CFA Institute Standards Flashcard

Front

Has Chapman violated the Standard relating to fair dealing?

Back

Yes, by offering the premium service only to clients he believes would benefit from it

Front

Has Michael Cane, CFA, violated the Standard relating to loyalty, prudence and care regarding his proxy voting policy?

Back

Yes, only because the proxy voting policy is disclosed to his clients only upon request.

Front

Who has violated the Standards regarding referral fee arrangements at Global Investment Inc. when David Jacobs informs clients without an estimated dollar value and Megan Amari discloses details only after agreements are signed?

Back

Both Amari and Jacobs

Front

Has Manpreet Grewal, CFA, violated the Standards by not disclosing his arrangement of teaching underprivileged children for a nominal fee?

Back

No

Front

Smith is a financial analyst with XYZ Brokerage Firm preparing a purchase recommendation on JNI Corporation. Which situation represents a conflict of interest for Smith that must be disclosed? Options: Smith frequently purchases items produced by JNI. XYZ holds for its own account a substantial common stock position in JNI. Smith’s brother-in-law is a supplier to JNI.

Back

XYZ holds for its own account a substantial common stock position in JNI.

Front

Did Quinn violate the Code and Standards with his resume update regarding his eligibility for the CFA charter?

Back

Quinn violated the Code and Standards by incorrectly stating that he is eligible for the CFA charter.

Front

According to the guidance provided by the Standards, which of the following is not among the recommended procedures for compliance with the Standard relating to independence and objectivity?
Create a restricted list,
Prohibit the acceptance of gifts,
Appoint a senior compliance officer with oversight responsibilities

Back

Prohibit the acceptance of gifts

Front

A member is developing allocation procedures for block trades and new issues. According to the recommended procedures for compliance with the Standard relating to fair dealing, the member's allocation procedures should involve: bundling orders on a first-in, first-out basis for efficiency as appropriate for the asset class.

Back

bundling orders on a first-in, first-out basis for efficiency as appropriate for the asset class.

Front

Which of the following is a recommended procedure for members to meet their obligations under the Standard relating to performance presentation? Options: Members should use a single representative account for each investment mandate while presenting performance history, Members should consider the knowledge and sophistication of the audience to whom the performance history is being presented, Members should exclude terminated accounts while presenting performance history with an indication of when the accounts were terminated

Back

Members should consider the knowledge and sophistication of the audience to whom the performance history is being presented

Front

Would Sue Kim, CFA, comply with the CFA Institute Standards if she purchased shares of a company she learned about during dinner with the CEO, knowing that local laws allow insider trading?

Back

No