Reading 2-IV: Standards of Professional Conduct & Guida white, beginning, class, black, through

mayanfang1

Q16. Sharon West is a CFA charterholder and trust officer for REO Trust Company. Soon after beginning work for REO, West finds that REO has been conducting all its securities transactions through her brother who is a registered representative. West's brother charges REO commissions that are equal to the lowest available from another broker. West's brother tells her that if she continues doing business with him, he will give her a substantial discount on all personal transactions she conducts through him. West:

A)   must inform her employer of the arrangement because she is doing business with a member of her immediate family.

B)   does not need to inform her employer of the arrangement because the commissions her brother charges the firm are the lowest possible.

C)   must inform her employer of the arrangement because it provides her with additional compensation.

Q17. Jill Marsh, CFA, works for Advisors where she manages a portfolio for a wealthy family. Marsh earns 1% of the portfolio’s value each year in the form of a commission from Advisors. The family just told her that any year the portfolio she manages earns more than a 10% return, the family will give her the use of the family’s vacation home for one week. Hirsh will comply with Standard IV(B), Additional Compensation Arrangements, if she:

A)   sends an e-mail to her supervisor about the vacation home.

B)   does nothing with respect to this.

C)   delivers a typed memo to her supervisor about the vacation home the first time she uses it.

mayanfang1

答案和详解如下：

Q16. Sharon West is a CFA charterholder and trust officer for REO Trust Company. Soon after beginning work for REO, West finds that REO has been conducting all its securities transactions through her brother who is a registered representative. West's brother charges REO commissions that are equal to the lowest available from another broker. West's brother tells her that if she continues doing business with him, he will give her a substantial discount on all personal transactions she conducts through him. West:

A)   must inform her employer of the arrangement because she is doing business with a member of her immediate family.

B)   does not need to inform her employer of the arrangement because the commissions her brother charges the firm are the lowest possible.

C)   must inform her employer of the arrangement because it provides her with additional compensation.

Correct answer is C)

Members are required to disclose to their employer in writing all monetary compensation or other benefit they receive in addition to the employer’s compensation. The discounting of West’s commissions is a benefit that must be disclosed.

Q17. Jill Marsh, CFA, works for Advisors where she manages a portfolio for a wealthy family. Marsh earns 1% of the portfolio’s value each year in the form of a commission from Advisors. The family just told her that any year the portfolio she manages earns more than a 10% return, the family will give her the use of the family’s vacation home for one week. Hirsh will comply with Standard IV(B), Additional Compensation Arrangements, if she:

A)   sends an e-mail to her supervisor about the vacation home.

B)   does nothing with respect to this.

C)   delivers a typed memo to her supervisor about the vacation home the first time she uses it.

Correct answer is A)       

Standard IV(B) 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. E-mail messages qualify. As long as the agreement is in effect, she must inform her employer even if she has yet to use the potential benefit.

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