Reading 2-III: Standards of Professional Conduct &amp; Guidan

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2^#

发表于 2011-2-24 15:24 | 只看该作者

Greg Stiles, CFA, CAIA, has recently liquidated most of a client’s portfolio because the client is planning to buy a house. Stiles informs one of the brokers in his office who has his real estate license about the plans of his client. With respect to Standard III(E), Preservation of Confidentiality, this action:

A)	is appropriate since Stiles keeps the information in the firm.

B)	is appropriate since Stiles only tells a licensed salesman.

C)	violates the Standard unless the client asks Stiles to tell the licensed salesman.

According to Standard III(E), Preservation of Confidentiality, Stiles must keep client information confidential and limit the information to those people directly related to servicing the client. Merely working in the same firm does not qualify a person for learning about the client of a fellow analyst.

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发表于 2011-2-24 15:25 | 只看该作者

Standard III(E), Preservation of Confidentiality, applies to the information that an analyst learns from:

A)	current clients and prospects only.

B)	current clients and former clients only.

C)	current clients, former clients, and prospects.

According to Standard III(E), Preservation of Confidentiality, an analyst must preserve the confidentiality of information communicated by clients, former clients, and prospects.

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发表于 2011-2-24 15:25 | 只看该作者

While servicing his clients’ accounts, an analyst who is a CFA charterholder, determines that one client is probably involved in illegal activities. According to Standard III(E), Preservation of Confidentiality, the analyst may NOT do which of the following?

A)	There are no exceptions in this list.

B)	Contact CFA Institute about the determination.

C)	Contact the appropriate governmental authorities about the determination.

Standard III(E) allows an analyst to reveal information about a client to CFA Institute since CFA Institute will keep the information confidential. If the analyst is reasonably certain a law has been violated, an analyst may have an obligation to report the activities to the appropriate authorities. Therefore, neither of the listed actions are exceptions from the analyst’s options.

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发表于 2011-2-24 15:25 | 只看该作者

Greg Stiles, CFA, keeps a list of his clients’ birthdays and has personally sent them a birthday card each year at the appropriate time. With respect to this action, which of the following may be a violation of Standard III(E), Preservation of Confidentiality?

A)	Sending a gift along with the card.

B)	Hiring a company outside the firm to perform the task.

C)	The mere act of sending a birthday card each year.

According to Standard III(E), an analyst should limit the number of persons who have access to clients’ personal information. Allowing a company outside the firm to send birthday cards could be a violation. Sending a birthday card is not a violation, nor is sending a gift of reasonable value.