1、Tony Calaveccio, CFA, is the manager of the TrustCo Small Cap Venture Fund in Toronto. He places trades for the fund with River City Brokerage. River
City provides Calaveccio with soft dollars to purchase research. River
City also deals in municipal bonds, some of which Calaveccio holds in his personal portfolio. He periodically uses the soft dollars to request research reports on various small cap stocks and also on the status of the municipal bond market and issues that he holds. These actions are: A) not in violation of the Code and Standards. B) in violation of his fiduciary duties regarding the small cap research, but not so regarding the research on the municipal bonds. C) in violation of his fiduciary duties regarding both the small cap research and the municipal bond research. D) in violation of his fiduciary duties regarding the municipal bond research but not so regarding the research on the small cap issues. The correct answer was D) The issue at hand is the member's fiduciary responsibilities in handling "soft dollars" which are technically the property of the client. Standard III(A), Loyalty, Prudence, and Care, delineates the member's fiduciary responsibilities with regards to soft dollars. Since municipal bond research is clearly not relevant to the Small Cap Fund holders, he is clearly using the soft dollars to obtain research for his personal benefit and is in violation of the Standard. 2、Which of the following is a possible breach of fiduciary duties by a CFA Institute member who manages assets on behalf of a client? A) None of these breach fiduciary duties. B) Using directed brokerage. C) Obeying the rules of corporate governance. D) Voting all proxies of stocks the client owns. The correct answer was D) Proxies have economic value to the client. To comply with Standard III(A), the analyst is obligated to vote proxies in an informed and responsible manner. A cost benefit analysis may show that voting all proxies may not benefit the client, so voting proxies may not be necessary in all instances. Directed brokerage occurs when the client requests that a portion of the client's brokerage be used to purchase services that directly benefit the client. Although, this may prevent best execution, it does not violate the Standards as it was directed by the client, not the brokerage firm. 3、In order to comply with Standard III(A), Loyalty, Prudence, and Care, an analyst needs to: A) perform all of the actions listed here. B) liquidate his holdings of all stocks that his client owns. C) comply with applicable fiduciary duty. D) charge the average fee of his competition in the market. The correct answer was C) To comply with Standard III(A), the analyst must use reasonable care and exercise prudent judgment, always act for the benefit of clients, and determine and comply with applicable fiduciary duty. Neither liquidating personal holdings nor charging some “average” fee is required. 4、While trading on behalf of a pension account, an analyst receives special research reports from the brokerage firm with whom she is doing the trades. Such an activity is: A) a violation of both Standard III(A), Loyalty, Prudence, and Care, and the Code of Ethics. B) not in itself a violation of Standard III(A), Loyalty, Prudence, and Care, nor the Code of Ethics. C) a violation of only The Code of Ethics. D) a violation of only Standard III(A), Loyalty, Prudence, and Care. The correct answer was B) An analyst can receive research from a brokerage firm with whom she is trading on behalf of a client. The analyst should inform the client of the arrangement. The client is more likely to violate Standard III(A) by obtaining non-research services or, worse yet, personal benefits from the brokerage firm. 5、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) place the client’s interest before the employer’s interest. C) act in a prudent and judicious manner. D) support the sponsor's management during proxy fights. The correct answer was D) Members are required to act in the interest of their clients. In voting proxies, the client’s interest must prevail over management’s interest. | 
发表于 2008-4-29 12:05
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