Essay on Key Points

Submitted By urcaosister
Words: 4072
Pages: 17

1. Two principles of the Rules of Procedure for Proceedings Related to Professional Conduct: (1) confidentiality of proceedings ; (2) fair process to the member and candidate

2. A composite must include all actual, fee-paying, discretionary portfolios managed in accordance with the same investment mandate, objective, or strategy (Standards IV Composites).
By including both value and growth portfolios, the composite is made up of portfolios with different investment mandates or strategies.

3. Making full and fair disclosure of all matters that could reasonably be expected to impair one’s independence and objectivity or interfere with respective duties to one’s clients is required by Standard VI Conflicts of Interest of the CFA Institute Code of Ethics and Standards of Professional Conduct.

4. B is correct because the client is the trust/trustees(托管人), not the beneficiary(受益人). Mawar followed Standard III (C) Suitability by managing the trust assets in a way that would likely result in a stable source of income while keeping the risk profile low, thereby complying with the investment objectives of the trust.

5. There is no evidence Chandarana violated Standard VII (B) with regard to his being a CFA candidate. Specifically, Chandarana does not overstate his competency or imply he will achieve superior performance as a result of his CFA designation. It does appear Chandarana did not act with integrity when he hid information that could potentially harm his new employer’s reputation, thus violating Standard I (D) Professionalism (Misconduct) and Standard IV (A) Duty to Employers (Loyalty).

6. 客人的先操作,所以没有违反priority of transactions

7. The prospective supervisor’s first step should be to not take the position. Accepting the position with inadequate procedures in place or improper marketing material would leave Inkster at risk of incurring a violation of the Code and Standards—Standard IV (C) Responsibilities of Supervisors. She could agree to be hired as an interim consultant with the bank in order to implement adequate procedures before taking on any supervisory role.

8. The utility is not a suitable investment for a fund that only invests in companies with good environmental records. Continuing to hold this investment, therefore, was a violation of Standard III (C) Suitability.

9. It is a violation of Standard VII (B) Responsibilities as a CFA Institute Member or CFA Candidate to claim the CFA charter helped her to achieve superior returns.

10. A is correct because the GIPS require that firms be defined as an investment firm, subsidiary, or division held out to clients or prospective clients as a distinct business entity (0.A.12). A multi-national financial services holding company is unlikely to be solely operating as an investment firm, and the scope of the business could also make it more difficult to claim compliance on a firm-wide basis.

11. For periods beginning on or after 1 January 2011, total firm assets must include the aggregate fair value of all discretionary and non-discretionary assets managed by the firm. This includes both fee-paying and non-fee-paying portfolios (0.A.13).

12. Where local laws and regulations regarding calculation and presentation conflict with GIPS standards, firms must abide by(遵守) the local laws and regulations. They are still allowed to claim GIPS compliance but must disclose areas where the local requirements conflict with those of the GIPS standards.

13. GIPS standards (0.A.9) state “firms must make every reasonable effort to provide a compliant presentation to all prospective clients. As long as a prospective client has received a compliant presentation within the previous 12 months, the firm has met this requirement. It is a GIPS recommendation, not a requirement, that all clients receive a compliant presentation on an annual basis (0.B.4).

14. Simone violated Standard II (A) Material Nonpublic Information by