Q6. All of the following are required by fiduciaries under Standard III(A), Loyalty, Prudence, and Care, EXCEPT: A) act solely in the interest of the ultimate beneficiaries. B) support the sponsor's management during proxy fights. C) place the client’s interest before the employer’s interest.
Q7. Tony Calaveccio, CFA, is the manager of the TrustCo Small Cap Venture Fund in Toronto. Calaveccio places a trade with Quantco Brokerage. While Calaveccio's part of the transaction was conveyed correctly to Quantco, there was a trading error made in Calaveccio's account due to a slip up within Quantco. Calaveccio realizes that the error has taken place, and informs his contact at Quantco. Calaveccio allows Quantco to cover the error, with no cost to TrustCo. This is: A) permissible under CFA Institute Standards since some trading errors are a fact of life in the securities industry. B) a violation of Calaveccio's duty to his employer. C) a violation of Calaveccio's fiduciary duties.
Q8. In order to comply with Standard III(A), Loyalty, Prudence, and Care, an analyst needs to: A) perform both of the actions listed here. B) comply with applicable fiduciary duty. C) liquidate his personal holdings of all stocks that his client owns.
Q9. An analyst with his own money management firm trades on behalf of several large pension funds. The analyst now performs all trades through a particular brokerage firm because the brokerage provides his firm with a no-interest line of credit if paid within 60 days. The line of credit is available to all brokerage clients. The brokerage provides the analyst with personal account privileges that he would not otherwise be eligible for. The brokerage also provides the analyst with free research reports on many companies. Which of these benefits are violations of Standard III(A), Loyalty, Prudence, and Care? A) Neither of these. B) The personal account privileges. C) The research reports.
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发表于 2009-1-12 16:32
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