Q1. Which one of the following constitutes the illegal use of material nonpublic information?

A)   Trading on information your sister, the firm's attorney, told you over dinner.

B)   Trading based on your analytical review of the firm's future prospects.

C)   Trading immediately after attending the firm's annual shareholders’ meeting.

Q2. Hunter Harrison, CFA, is president and chief investment officer of Ironclad Investments, an investment adviser and pension consultant for medium and large corporate pension clients. Ironclad recently hired a compliance officer to update its compliance manual, which follows the CFA Institute Code and Standards. Harrison serves as a director on several non-profit and corporate boards of directors, some of which have their pension assets managed by Ironclad. Harrison oversees Ironclad’s research analysts and portfolio managers, including Michelle Myers, who recently completed Level II of the CFA examination last year. Myers is a portfolio manager who regularly meets with clients and prospects. Myers also is a partner in a software company that sells retirement and benefit administration services to institutional clients, some of which are also clients of Ironclad. During her correspondence with prospects and clients, Myers commonly refers to her status as a candidate in the CFA program. She has included reference to her status as a “Level III CFA candidate” in her biographical background to increase her prominence in the industry.

During her correspondence with prospects and clients, Myers commonly refers to her status as a candidate in the CFA program. She has included reference to her status as a “Level III CFA candidate” in her biographical background to increase her prominence in the industry. What Standard governs the actions of Myers and is she in compliance?

A)   Standard VII: Responsibilities as a CFA Member or CFA Candidate. Compliance: Yes.

B)   Standard I: Professionalism. Compliance: No.

C)   Standard III: Duties to Clients. Compliance: No.

Q3. All of the following most likely apply to Myers’ participation as a partner in the software company EXCEPT:

A)   Standard IV (B.5): Preservation of Confidentiality.

B)   Standard IV (B.4): Priority of Transactions.

C)   Standard III (C): Disclosure of Conflicts to Employer.

答案和详解如下：

Q1. Which one of the following constitutes the illegal use of material nonpublic information?

A)   Trading on information your sister, the firm's attorney, told you over dinner.

B)   Trading based on your analytical review of the firm's future prospects.

C)   Trading immediately after attending the firm's annual shareholders’ meeting.

Correct answer is A)

Members may not trade on material nonpublic information; therefore, the information conveyed by the firm’s attorney may not be used by a member for trading purposes.

Q2. Hunter Harrison, CFA, is president and chief investment officer of Ironclad Investments, an investment adviser and pension consultant for medium and large corporate pension clients. Ironclad recently hired a compliance officer to update its compliance manual, which follows the CFA Institute Code and Standards. Harrison serves as a director on several non-profit and corporate boards of directors, some of which have their pension assets managed by Ironclad. Harrison oversees Ironclad’s research analysts and portfolio managers, including Michelle Myers, who recently completed Level II of the CFA examination last year. Myers is a portfolio manager who regularly meets with clients and prospects. Myers also is a partner in a software company that sells retirement and benefit administration services to institutional clients, some of which are also clients of Ironclad. During her correspondence with prospects and clients, Myers commonly refers to her status as a candidate in the CFA program. She has included reference to her status as a “Level III CFA candidate” in her biographical background to increase her prominence in the industry.

During her correspondence with prospects and clients, Myers commonly refers to her status as a candidate in the CFA program. She has included reference to her status as a “Level III CFA candidate” in her biographical background to increase her prominence in the industry. What Standard governs the actions of Myers and is she in compliance?

A)   Standard VII: Responsibilities as a CFA Member or CFA Candidate. Compliance: Yes.

B)   Standard I: Professionalism. Compliance: No.

C)   Standard III: Duties to Clients. Compliance: No.

Correct answer is A)

The actions of Myers are covered under Standard (VII): Responsibilities as a CFA Member or CFA Candidate and Myers appears to be in compliance with the Standard. Standard VII(B): Reference to CFA Institute, the CFA Designation, and the CFA Program requires that CFA candidates appropriately reference their participation in the CFA program, clearly stating their candidate status and not implying the achievement of any type of partial designation. Additionally, to be considered a candidate an individual must be registered to take the next scheduled exam. Since Myers completed Level II last year, and no information is provided to indicate that she is not registered for the next examination, she appears to be a candidate.

Q3. All of the following most likely apply to Myers’ participation as a partner in the software company EXCEPT:

A)   Standard IV (B.5): Preservation of Confidentiality.

B)   Standard IV (B.4): Priority of Transactions.

C)   Standard III (C): Disclosure of Conflicts to Employer.

Correct answer is B)

Standard VI(B): Priority of Transactions most likely does not apply to Myers’ participation in the software company. Standard VI(B) covers priority over transactions in securities or other investments for clients and employers to prevent any instances of “front-running” for the benefit of the member. Myers’ software business is not transaction oriented, and there is no information that describes any instances of the software company having priority in securities transactions over Ironclad or its clients.