26、A CFA Institute member conscientiously maintains records of changes in security regulations. The member notices that his colleagues do NOT, and does NOT say anything. Is this a violation of Standard I(A)? A) Yes, and the member should disassociate from these colleagues. B) No, as long as the colleagues do not violate the new rules. C) Yes, because the member is bound by the Code of Ethics. D) No, as long as he allows the colleagues access to his files. The correct answer was C) Component three of the Code says that a member shall “Strive to maintain and improve their competence and the competence of others in the profession.” Ignoring the neglect of rule changes of others would clearly be incongruent with this component. Simply allowing the colleagues access to the files is not enough effort to constitute “striving.” As long as the colleagues do not violate the laws, the member does not have to disassociate himself from the colleagues. 27、If you suspect that a colleague is violating the law you should: A) report the illegal activity to CFA Institute Professional Standards Review Board for action. B) report all illegal activities to the appropriate regulatory agency. C) consult with the company counsel to determine if in fact a law is being violated. D) associate yourself with the illegal activity. The correct answer was C) Standard I(A), Knowledge of the law, applies in this situation. According to this standard, members shall not knowingly participate or assist in any violation of laws, rules, or regulations governing CFAs. When members suspect a client or a colleague of planning or engaging in ongoing illegal activities, members should take the following actions: §
Consult counsel to determine if the conduct is, in fact, illegal. §
Disassociate from any illegal or unethical activity. When members have reasonable grounds to believe that a client’s or employee’s activities are illegal or unethical, the members should disassociate from these activities and urge their firm to attempt to persuade the perpetrator to cease such activity. Note: The Code and Standards do not require that members report legal violations to the appropriate governmental or regulatory organizations, but such disclosure may be prudent in certain circumstances. 28、Mary White, CFA, sits on the board of directors of XYZ Manufacturing, Inc. She discovers that management has knowingly participated in an activity she knows is illegal. According to the CFA Institute Standards of Professional Conduct, White is required to: A) All of these choices are correct. B) disassociate herself from the activity. C) seek legal advice to determine what actions should be taken. D) report the activity to the appropriate supervisory person at her firm. The correct answer was A) Standard I(A), Knowledge of the Law. Prohibition against knowingly practicing or assisting in violation of laws, rules, and regulations. If White knows that someone has engaged in a possible illegal activity, she should: (1) report the finding to the appropriate supervisory person at her firm, (2) if the situation is not remedied, disassociate herself from the situation, and (3) seek legal advice to see what other actions, such as notifying the proper regulatory agency, should be taken. 29、Joan Platt, CFA, operates an investment advisory service in New York but maintains an office in Xania. Xania recently establish a stock market, which is not very efficient. None of the Xanian stocks trade in the U.S. market. Xania legally permits the use of material inside information. Platt believes that using inside information would help her compete against other Xanian investment advisors and also help some of her Xanian clients reach their investment objectives. Platt is considering adopting local investment practices in Xania. According to CFA Institute Standards of Professional Conduct, Platt may: A) not use material inside information. B) use material inside information, but only after notifying CFA Institute. C) use material inside information because Xania legally permits this practice. D) use material inside information because CFA Institute Standards apply only to countries where the use of material inside information is illegal. The correct answer was A) Because applicable law involving material inside information is less strict than the Code and Standards, Platt must adhere to the Code and Standards. Standard II(A) prohibits against use of material nonpublic information. 30、Georgia Jones, CFA, is an analyst for Johnson, Thomas & Co. She also serves as an outside director for Dewey Manufacturing, Inc. In the course of her duties, she begins to believe that Dewey’s income statement for the most recent period may have been misstated. Georgia should do all of the following EXCEPT: A) consult with Dewey Manufacturing's legal counsel. B) consult with Johnson, Thomas' legal counsel. C) inform the Securities and Exchange Commission. D) refrain from voting to approve any of Dewey's financial statements that include the element in question. The correct answer was C) Jones must pursue her concerns about a possible misstatement, because, if material, it may be misleading to investors. Consistent with Standard I(A), Jones must not knowingly participate or assist in a regulatory violation. As long as her concerns exist, she must not validate any financial statements by voting to approve them. In addition she should seek competent legal counsel both at her own firm and at Dewey Manufacturing. She should not go to regulatory bodies until she has more certainty about the possible misstatement and has received counsel that she should proceed. | 
发表于 2008-4-16 16:28
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