CFA一级职业伦理习题大串讲课件.ppt

1.13 Standard III(B). Fair dealing Micheal, CFA, purchased a large block of stock at varying prices during the trading session. Micheal reviewed her purchase prices to determine prices that should be assigned to each specific account after the stock realized a significant gain in value before the close of the trading day. According to the Standards of Practice Handbook, Micheal’s least appropriate action is to allocate the execution prices: on a first-in, first-out basis with consideration of bundling orders for efficiency. across the participating client accounts pro rata on the basis of account size. across the participating client accounts at the same execution price. Solution: B Adam, CFA, is the chief compliance officer at ABC Investment Limited. A new policy requiring the pro rata distribution of new security issues to all established discretionary accounts for which the new issues are appropriate, was instituted by Adam. The policy also requires that the newly established discretionary accounts should be excluded from the distribution until they have reached their one-month anniversary date. This policy is disclosed to all existing and potential clients. Did Newton most likely violate any CFA Institute Standards of Professional Conduct? Yes. No, because the policy has been adequately disclosed to all existing and potential clients. No, because the allocation policy is not inequitable under the standards. Solution: A 1.14 Standard III(B). Fair dealing 1.15 Standard III(C). Suitability Responsibilities fall on members/candidates in an advisory relationship Make a reasonable inquiry into a client or prospective client’s investment experience, risk and return objectives, and financial constraints prior to making any investment recommendation or taking investment action, must reassess and update regularly(at least annually or prior to material change) gather information and to make a suitability analysis before making a recommendation or taking investment adv