Q5. Roberta Conn is an investment advisor who has a client, Ernie Ray, who is a tax lawyer. At lunch, Conn noticed Ray and the Chief Financial Officer of CDH Company at the next table. She overhears them talking and ascertains that CDH is about to announce higher than expected earnings. Before the earnings release, Ray contacts Conn and asks her to purchase 3,000 shares for his portfolio. Conn:

A)   must refuse to purchase the shares for Ray.

B)   can purchase shares for Ray, but cannot ever purchase shares for her personal account.

C)   must wait until after she purchases the 3,000 shares for Ray to purchase shares for her personal account.

Q6. An analyst working at an investment firm has a client that provides income tax prep services for individuals. The client tells the analyst that as long as he is the client’s analyst, he will prepare the analyst’s income tax return free of charge. The analyst needs to:

A)   do nothing since the offer is not linked to the performance of the client's portfolio.

B)   explicitly refuse such an offer.

C)   inform his supervisor in writing of the offer.

答案和详解如下：

Q5. Roberta Conn is an investment advisor who has a client, Ernie Ray, who is a tax lawyer. At lunch, Conn noticed Ray and the Chief Financial Officer of CDH Company at the next table. She overhears them talking and ascertains that CDH is about to announce higher than expected earnings. Before the earnings release, Ray contacts Conn and asks her to purchase 3,000 shares for his portfolio. Conn:

A)   must refuse to purchase the shares for Ray.

B)   can purchase shares for Ray, but cannot ever purchase shares for her personal account.

C)   must wait until after she purchases the 3,000 shares for Ray to purchase shares for her personal account.

Correct answer is A)

According to Standard II(A), Material Nonpublic Information, Conn cannot act or cause others to act on material nonpublic information until the information is made public. The information overheard at lunch was material and nonpublic; therefore, Conn must wait until the information is made public before accepting Ray’s order.

Q6. An analyst working at an investment firm has a client that provides income tax prep services for individuals. The client tells the analyst that as long as he is the client’s analyst, he will prepare the analyst’s income tax return free of charge. The analyst needs to:

A)   do nothing since the offer is not linked to the performance of the client's portfolio.

B)   explicitly refuse such an offer.

C)   inform his supervisor in writing of the offer.

Correct answer is C)

Standard IV(B), Additional Compensation Arrangements, requires that members disclose to their employer, in writing, all benefits that they receive in addition to their regular compensation for services they perform on behalf of their employer.

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