CFA三级培训项目：经典题_Ethical and Professional Standards_打印版.docx

EthicalandProfessionalStandardss(£O*5dmHS69f5>CgApplicationoftheCodeandStandards:LevelIIIMW&«hmiBQCase:JasonLockeJasonLocke,CFA,hasrecentlybeenhiredastheChiefInvestmentOfficeroftheEscarpmentRegionalGovernmentEmployees*PensionFund(theFund).Currently,heisconductingevaluationsofallexternalmanagersemployedbytheFundtoensurethattheyareprovidingthehighestpossiblereturnsfortheirmandates,whilecomplyingwithallapplicablelawsandregulations.1.ockeisevaluatingtheactivityofNiagaraGrowthManagers(NGM)falocalmoneymanagerallocated10percentoftheFund,sassets.Herealizesthatanyreductionintheallocationtothislocalmanagerwillbemetwithconsiderablepoliticalpressure.Theinvestmentpolicystatement(IPS)forNGM,sportionoftheFund,sassetsstatesthatNGMistoactivelymanageanequityportfoliooflocalSmall-cap,high-techcompanies.UponhisreviewofNGM*sactivity,Lockeisconcernedabouttwoitemsthathewouldlikeexplained.AtameetingwithNGMMportfoliomanager,EmmaBlack,CFA,Lockeaskshertocommentoneachitem:CommoditiesPositions1.ocke:,0verthelastyear,severallargepositionsincommoditieshavebeentakenbytheFund'sportfolio.ThisisinconsistentwiththeIPS.wBlack:"Commoditieshavesignificantlyoutperformedhigh-techequitiesrecently.Iaddedcommoditiestolargerclients,portfoliosonatemporarybasis.Clientswerenotinformedbecausethepositionswillbesoldoncemarketsentimentshifts.Ihavenotmanagedcommoditiesbefore,butIamgettinggoodreturns/*1.ocke:"Iamuncomfortablewiththeseinvestmentsinthisportfolio/'QCase:JasonLockeIPOShareAllocation1.ocke:,TheFund'sportfolioreceived50,000sharesofaninitialpublicoffering(IPO)on1April.On15May,30,000shareswereremovedatthecurrentmarketprice."Black:,TherewasaproblemwithNGMfsIPOallocationalgorithm.Initially,youwereover-allocatedandwhenwediscoveredtheerror,youraccountwasadjusted/1.ocke:"Short-terminterestshouldhavebeencreditedtotheFundforuseofitscashtocoverthetrade.Inanycase,thiswasanIPOofalargeinternationalhigh-techcompany.Itwasnotanappropriateinvestmentfortheportfolio/'QCase:JasonLockeAfterthemeeting,LockeisnotsatisfiedwithBlack'scommentsanddecidesthatfurtheractionisrequired.HealsodecidesthathewillallowNGMtocontinuetomanageFundassetsuntilhefinisheshisevaluation.ThisdecisionisbasedonthesuperiorreturnsoftheNGM-managedassets,thesignificantdiversificationthisportfolioaddstotheFund,andalsothepoliticalimplicationsoffiringthelocalmoneymanager.Thenextweek,LockecallsBlackandoutlinesseveralconditionsthatmustbefulfilledforNGMtocontinueasamanagerfortheFund.Oneoftheconditionsoutlinedrelatestotradeallocations.TradeAllocation1.ocke:TrovidewrittentradeallocationproceduresconsistentwiththeCFAInstituteStandardsofProfessionalConduct/*Black:"Iwillmailyouacopyofournewproceduresstatingthattradeallocationsmustbereviewedattheendofeachmonthagainstclients1IPS.Italsosaysthatinterestwillbecreditedtoaccountsthathavebeenincorrectlyallocatedsharesanddebitedfromthoseaccountsthatshouldhavereceivedshares."Withhisevaluationcomplete；LockemustnowconsiderwhethertoretainNGMasoneoftheFund,sassetmanagers.Case:JasonLockeAccordingtotheCFAInstituteStandardsofProfessionalConduct,LockeoweshisprimarydutyofloyaltyinmanagingtheFundto:A.theplantrustees.Case:JasonLockeQAnswer:B.1.ocke'sprimarydutyistohisclients.Inthecaseofapensionplan,theclientsarealloftheultimatebeneficiaries.Withrespecttothecommoditiespositions,whichofthefollowingactionsbestdescribesBlack'sviolationoftheCFAInstituteStandardsofProfessionalConduct?BlackviolatedCFAInstituteStandardsby:A.buyinganassetclassinwhichshehasnopriormanagementexperience.B.buyingassetsthatareinconsistentwiththeportfolio'sInvestmentPolicyStatement.C.failingtonotifytheclientthatshewouldtemporarilydeviatefromtheclientsInvestmentPolicyStatement.Case:JasonLockeAnswer:B.UndernocircumstancesshouldamanagertakeinvestmentactionthatisinconsistentwiththeclientsIPS.Case:JasonLockeWithregardtotheIPOshareallocation,arebothNGM,smethodoftradecorrectionon15MayandLocke'sdemandforashort-terminterestcredit,respectively,consistentwiththeCFAInstituteStandardsofProfessionalConduct?A.Yes.B.No,onlythemethodoftradecorrectionisconsistent.C.No,onlythedemandforashort-terminterestcreditisconsistent.1.ocke,sinterestclaimislegitimatesincetheFund,scashwasemployedtopurchaseequitiesthatwerelaterremovedfromtheaccount.Therefore,theFundisowedinterestfortheperiodinquestion.Case:JasonLockeAfterhisinitialmeetingwithBlack,doesLocke'sdecisiontoallowNGMtocontinuemanagingtheportfolioviolatetheCFAInstituteStandardsofProfessionalConduct?A.No.B.Yes,becauseheallowedpoliticalfactorstoinfluencehisdecision.C.Yes,becauseheisobligatedtoimmediatelysuspendNGMuntilhefinisheshisevaluation.Case:JasonLockeQAnswer:A.UntilLocke,sinvestigationiscomplete,hehasnoobligationtosuspendthemanagerortakeanyotheraction.Hebelievesthemanagercananddoesaddvaluethroughsuperiorreturnsanddiversification,andthereforeitmaybereasonabletoretainNGMifLockecanbesatisfiedthatthemanagercanactwithintheconstraintsoftheIPSandCFAInstituteStandards.Untiltheanalysisiscomplete,itwouldnotbepractical,andLockewouldbeviolatinghisdutytoactinhisclients1bestinterestsbysuspendingthemanagerandleavingtheassetsunmanagedortotemporarilymovingthemtoanothermanagerforsafe-keeping.WithregardtoLocke,sconditionregardingtradeallocation,doesBlack,sresponseviolatetheCFAInstituteStandardsofProfessionalConductwithrespecttoallocationreviewsandinterestadjustments,respectively?A.Yes.B.No,itviolatesthestandardsonlywithrespecttoallocationreviews.C.No,itviolatesthestandardsonlywithrespecttointerestadjustments.QCase:JasonLockeAnswer:A.Clientsuitabilityforaninvestmentmustbereviewedpriortoallocation,notafterward.Withrespecttointerestadjustments,clientswhowereincorrectlyallocatedsharesmustbepaidfortheuseoftheircash;however,innoinstanceshouldclientssufferalossbecauseofanallocationerrorbythemanager(thatis,haveinterestremovedfromtheirportfolioeventhoughsharesareputintheiraccountonabackdatedbasis).Case:JasonLocke哥Basedonhiscompleteevaluation,whatisLocke'sbestcourseofactionwithrespecttoNGM,smanagementoftheFund'sassets?A.ReduceNGM,sallocationoftheFund,sassetsuntilNGMhasdemonstrateditscompliancewithLocke,sconditions.B.EliminateNGMasamanagersinceLockecannotbesurethatNGMwillactfairlyandinaccordancewiththeFund,sIPS.C.MaintainNGM,sallocationoftheFund,sassetsandconcentrateonevaluatingmanagerswithlargerproportionsoftheFund,sassetsorwithsub-standardperformance.1.ockehasadutytothepensionplanbeneficiariestoactintheirbestinterests.Hewouldbeviolatingthatdutyifhecontinuestoemployamanagerwhodoesnotmanageitsmandateordemonstratethatitisawareofandcomplieswithitsowndutiestoclients.Hemustdemonstratehisownprofessionalcompetencebyfiringthemanager.Case:EliasNanoEliasNano,arecentMBAgraduateandaCFALevelIlcandidate,isanunpaidsummerinternwithPatriarchInvestmentCounselandexpectstobeofferedafull-timepaidpositioninthefall.Throughhisefforts,heisabletoconvincesomefamilymembersandfriendstobecomeclientsofthefirm,andhenowassistswiththemanagementoftheiraccounts.Hissupervisorcongratulateshimandstates:"Theseclientsarethefoundationfromwhichyouwillbeabletobuildyourcareerasaninvestmentadvisor.wAfterworkinghardallsummer,NanoistoldthatPatriarchwillnotbeabletoofferhimapaidposition.QCase:EliasNanoNanointerviewswithanumberoffirms,andtellseachoneabouttheaccountsthatheismanagingandexpectstobeabletobringwithhim.BecausehewasmerelyaninternatPatriarch,hedoesnotthinkheowesanyparticularloyaltytoPatriarch.HegainsfurtherassurancethathecankeeptheclientsfromthefactthathisformersupervisorimpliedthatthesewereNanozsclients.NanosubsequentlyjoinsMarkoeAdvisorsasanassistantdirectorwithsupervisory management solutions for Markoe doesresponsibilities.MarkoeAdvisorsisaninvestmentfirmthatadvertisesthatitprovidescustomizedportfolioindividualandinstitutionalclients.Asamatterofpolicy,notrejectasaclientanyindividualmeetingtheaccountminimumsize.Markoehastwostrategiesaggressivegrowthequityandgrowthequityandisalwaysfullyinvested.NanoaskshisfamilyandfriendstotransfertheiraccountsfromPatriarchtoMarkoe.AsthefirstCFAcandidatetobeemployedbyMarkoe,Nanohasbeenaskedtoheadateamthatisreviewingthefirm,scompliancepoliciesandprocedures,whichNanoconsidersinadequateandincomplete.HestateshisconcernstoPresidentMarkoe:AlthoughMarkoeAdvisors,asafirm,cannotadopttheCFAInstituteCodeofEthicsandStandardsofProfessionalConduct,thefirmcanadopttheCFAInstituteAssetManagerCodeofProfessionalConduct."PresidentMarkoetellsNanothatthefirmisconsideringacquiringanotheradvisoryfirmthathassimilarcompliancepoliciesandprocedures.Markoesays:"Wearenotgoingtoconsideranycompliancechangesatthistime.QCase:EliasNanoNanodecidestodraftamodelcompliancedocumenttoguidediscussionsaboutcomplianceissuesatthefirminthefuture.Nano,sinitialdraftincludesthefollowingcomponentsofacompliancepolicystatement:PerformancePresentationPerformancedatamustbedocumentedforeachofMarkoeAdvisors*activeaccounts,bediscloseduponrequestandbecomparedwiththefirm,scomposite,whichiscomposedofactiveaccountsonly.Performancedatamustbepresentedonabefore-taxbasistoallclients,withthedisclosurethatallperformancedataarepresentedgrossoffees.SuitabilityofInvestmentsMarkoeAdvisorsftomaintainconsistencyofperformance,assignseachclienttooneofthefirm,stwoportfolios.Bothoftheseportfoliosaresufficientlybroadlydiversifiedtomeettheinvestmentobjectivesofallofourclients.Case:EliasNanoQMarkoeAdvisorsencouragesitsstafftobeinvolvedinthebusinessandciviccommunity.Onlybusinessorcivicintereststhatrelatetocurrentportfolioholdingsneedtobereportedtothefirm.ViolationsAnyviolationoftheMarkoeAdvisorscompliancepolicystatementwillbereportedtothepresident,andemployeeswillreceiveanofficialwarning.CompensationAllstaffmembersofMarkoeAdvisorswilldiscusswiththeirsupervisoralloutsidecompensationthattheyarereceivingormayreceive.DoesNanocomplywiththeCFAInstituteStandardsofProfessionalConductwhenheaskshisclientstotransfertheiraccountstoMarkoeAdvisors?A.No.B.Yes,becausehecontactedtheclientsafterleavingPatriarch.C.Yes,becausehewasaninternandnotapaidemployeeofPatriarch.Case:EliasNanoAnswer:B.StandardIV（八）prohibitsemployeesfromsolicitingtheclientsofemployerspriorto,butnotsubsequentto,theirdeparture.Case:EliasNanoIsNano,sstatementwithrespecttoadoptionoftheCFAInstituteCodeofEthicsandStandardsofProfessionalConductandtheCFAInstituteAssetManagerCodeofProfessionalConduct,respectively,correct?StandardsProfessionalConductNoYesNoTheCFACodeandStandardsapplytoindividualmembersandcandidatesofCFAInstitute,butfirmsareencouragedtoadopttheCodeandStandardsaspartoftheirfirmcodeofethics.TheCFAInstituteAssetManagerCodeofProfessionalConducthasbeendraftedspecificallyforfirms.Case:EliasNanoAccordingtotheCFAInstituteCodeandStandards,whatactionshouldNanotakeafterdiscussingthefirm'scompliancepolicywithPresidentMarkoe?Nanoshould:A.resignfromthefirm.Case:EliasNanoAnswer:C.StandardIV(C)statesthatthememberorcandidateshoulddeclineinwritingtoacceptsupervisoryresponsibilityuntilthefirmadoptsreasonableprocedurestoallowhimtoadequatelyexercisesuchresponsibility.DoesNano'sdraftcompliancepolicystatementconformtotheCFAInstituteCodeandStandardswithrespecttoperformancepresentation?A.No,becauseterminatedaccountsareexcluded.B.No,becauseperformanceisreportedtoallclientsgrossoffees.C.No,becauseperformancedataarepresentedonabefore-taxbasis.Case:EliasNanoAnswer:A.StandardIII(D)statesthatbothterminatedandactiveaccountsmustbeincludedaspartoftheperformancehistory.Case:EliasNanoDoesNano,sdraftcompliancepolicystatementconformtotheCFAInstituteCodeandStandardswithrespectto:SUitabilityOfinvestments?NoNoYesByplacingallclientsinoneofthetwospecializedportfoliositoperates,MarkoeAdvisorsisnotgivingadequateconsiderationtotheindividualneeds,circumstances,andobjectivesofeachclientasrequiredbytheStandards.Inaddition,theStandardsrequirethatmembersandcandidatesdiscloseallactualandpotentialconflictsofinterest,notjustthosethatrelatetocurrentportfolioholdings.Case:EliasNanoDoesNano*sdraftcompliancepolicystatementconformtotheCFAInstituteCodeandStandardswithrespectto:Case:EliasNanoQAnswer:A.TheStandardsrequirethatthesupervisorpromptlyinitiateaninvestigationtoascertaintheextentoftheviolationandshouldtakestepstoensurethatviolationswillnotberepeatedbylimitingormonitoringtheemployees,activities.TheStandardsalsorequirethatmembersandcandidatesobtainwrittenpermissionfromtheiremployerbeforeacceptinganycompensationorbenefitsfromthirdpartiesthatmaycreateaconflictofinterest.PatriciaJollie,CFA,isthefixed-incomeanalystandportfoliomanageratMahsudFinancialCorporation,asmallinvestmentfirm.On5April,afriendwhoworksforabond-ratingagencymentionstoJolliethatabondtheagencyisanalyzingwillexperiencearatingchange.ThatbondalsohappenstobeinMahsudFinanciaTsportfolios.Notwantingtotradeaheadoftheratingchangeannouncement,Jolliedecidestowaitfordistributionoftheinformationthroughherfriend,sscheduledinterviewonabusinesstelevisionprogramtheafternoonof8April.Onthemorningof8April,theinformationisreleasedonaworldwidefinancialnewsservice.JollieimmediatelychangeshermindaboutwaitingfortheinterviewandtradesthebondsinMahsudFinanciaTsportfolios.QCase:PatriciaJollieOn8AprilfJolliealsotradesasecondbondtorebalanceoneofMahsudFinanciaTsportfolios.Jollieknowsbeforeexecutinghertransactionthatthebondisthinlytraded.AlthoughJollie,stradewillmateriallyaffectthebond,smarketprice,itisnotherintentiontocreatepricemovement.Acolleaguewitnessesthetradeandlargebondpricechangeandsays,"Whatamarketoverreaction;thebondpriceappearstobedistortedow!mThecolleaguealsopointsouttoJolliethatMahsudFinanciaspolicyonmarketmanipulationstates:wMahsudFinancialemployeesmustrefrainfrommakingtransactionsthatdistortsecuritypricesorvolumewiththeintenttomisleadmarketparticipantsrQCase:PatriciaJollieInconductingfixed-incomeresearch,Jolliebelievesthatinsightintoprospectivecorporatebondreturnscanbederivedfrominformationthatisalsorelevanttoacompany,sstock.ShespendsseveralhoursaweekinequityinvestmentchatroomsontheinternetandshepaysparticularattentiontotheresearchreportspostedbyJillDean,CFAfaself-employedanalyst,onWwWJilLDean_the_lndependent_A.Priortowritingeachreport,Deanispaidaflatfeebythecompanieswhosestockssheresearches,butshedoesnotrevealthisfacttoreadersofherreports.Sheproducesreportsonlyforthosecompanieswhosestocksshecanlegitimatelygive"buy"recommendationsafterconductingathoroughanalysis.Otherwise,shereturnstheflatfee.InvestorshavecometorecognizeallherHbuyMratingsashavingasoundandreasonablebasis.JollieconsidersDean'ssummariesandforecaststobeverywell-crafted.DeanhasgivenJolliewrittenpermissiontousehersummariesandforecasts,wordforwordandwithoutattribution,inherownbondanalysisreports.Onoccasion,Jolliehasdoneso.InDean'sotherinternetpostings,shereportstheresultsofrelevantacademicfinancestudies.OnceJollielearnsofastudybyreadingDean,spostings,sheoftenreadstheoriginalstudyandmentionstheresultsinherownreports.Jolliealwayscitestheor