Am I the only one, along with perhaps BChadwick who really struggled with the Ethics questions? I thought they were much tougher than normal. Looks like the CFAI is taking the ethic questions to another level this year. So ticked because it might actually cost me a pass grade… grrr!
only 3 questions were ‘tough’ rest was straight forward
THing is we would never know what the right answers werefor some of the questions.
there was maybe 3-4 questions that were tough. the rest was starightforward.
i thought they were much easier than L2 last year. i absolutely crush any ethics questions – did all CFAI and schweser this year and missed two out both sets of books. i got totally owned on level 2 last year though LOL. the ethics this year seemed pretty easy…
asdffdsa Wrote: ------------------------------------------------------- > i thought they were much easier than L2 last year. > i absolutely crush any ethics questions – did all > CFAI and schweser this year and missed two out > both sets of books. i got totally owned on level 2 > last year though LOL. the ethics this year seemed > pretty easy… i went all strict on ethics this year. fired manager and stuff 
L2 ethics last year was a killer.
Frig…not a good sign for me then…
I had to definitely go over 3-4 questions at length in my review cus they were tricky, I think I did decent on ethics, but it was no cake walk.
I have no faith in ethics questions at all. I even flunked the CFA marketing material question. Kicking myself for that. I didn’t fire the manager, but decided to terminate him after the full review.
I terminated him after full review and what was the other question (1st one) about firing the manager again?
what about the credit/debit interest?? was that OK or should you not debit interest on the other account? also, should you back out shares at current cost or basis? I thought basis, but???
NO DEBIT TS TS TS!!!
I think I got this question wrong… I believe you have to use Market Value, otherwise the gain would remain in the client’s account who got the over-allotment. I just not realize there was “debit” in the question… thought there was only a mention of credit. But I knew this was probably one of the questions I was going to get nailed on.
I’ve always aced ethics so i’ll give my opinion. The answer to the trade question was its gotta be cost. You cant do market price because it disadvantages the client if the price has fallen. You HAD to fire the manager at the end, this was really obvious. The guy had broken the IPS on two occasion, showed no reason to believe that he would change, and his trade allocation procedures were hopeless, and there was circumstancial evidedence that he was being kept only for political reasons, breaking 1B. Reducing allocation to him isnt sufficient. 3A is absolute, you are either loyal to your clients or your not, there is no half loyalty.
on the debit interest, what’s the rationale for not debiting back? if you put shares in the account that should have been there in the beginning at the price paid on that date, then there is a gain/loss immediately which should be offset by the removal of interest during the period, otherwise you’re double dipping I thought???
What were some of the other ethics questions?
how about that non-fee paying wife IPO question? I chose no violation.
soft $$ question, were they ok in dealing w/ a broker who says you cant give the research to anyone even tho property of the client?
wife’s account was a discretionary account that he had beneficial interest in. Therefore, I chose no violation by leaving out his wife’s account for over-subscribed IPO’s.