ltraboo 10 According to the Standards of Practice Handbook, an investment his cl
ID: 2539125 • Letter: L
Question
ltraboo 10 According to the Standards of Practice Handbook, an investment his client is engaged in an illegal activity should: an investment manager who learns that A. seek legal counsel B. inform legal authorities C disclose the activity to the CFA Institute 11. Which of the following is most likely to be a key feature of GIPS standa A. Rely on the integrity of input data B. Address every aspect of performance measurement C. Have evolved over time to focus primarily on returns 12. According to the CFA Institute Standards of Practice Handbook, which of the following compliance procedures are members and candidates least likely recommended to consider? A. Prohibiting employee participation in equity-related IPOs. B. Offering different levels of service to clients on a selective basis. C. Limiting the number of employees who will know that a recommendation is to be disseminated. 13. Standard I (A)- Knowledge of the Law, requires members and/or candidates to: A. Document a violation when disassociating themselves from an illegal activity B. Have detailed knowledge of all the laws that could potentially govern their activities C. Abide by the rules and regulations related to the administration of the CFA examination 14. When establishing trade allocation procedures for client portfolios, members and candidates e ilek radi te execution price and charging the same commission. B. Execution price and commission on first in first out basis. C. Same execution commission and execution price based on first in first out basisExplanation / Answer
10.
A. Seek Legal Counsel
According to the standards of practice handbook, the investor should keep the client's information confidential under standard III E. However, during an illegal activity the member of CFA institute should seek firm's legal counsel immediately.
11.
A. Rely on integrity of input data
The data to be used should be accurate in order to provide more transparent results and show a true picture.
12.
B. Offering different levels of service to clients on a selective basis.
Under standard III B, the recommended procedure includes disclosing levels of service to all clients whether offered for same or different fees. Different levels of service should not be offered to clients selectively.
13,
B. Have detailed knowledge of all the laws that could potentially govern their activities.
According to Standard I (A), members are required to understand and comply with all applicable laws, rules and regulations governing their activities.
14.
C. Same execution commission and execution price based on first in first out basis.
Processing and executing orders on first in first out basis and giving all client accounts which are participating in a block trade with same execution price and commission.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.