Patricia Cuff is the chief financial officer and compliance officer at Super Selection Investment Advisors that has incorporated the CFA Institute Code of Standards into the firm’s compliance manual. Karen Trader is a portfolio manager for Super Selection. Trader is friendly with Josey James, president of AMD, a rapidly growing biotech company. Trader has served on AMD’s board of directors for the last three years. James has asked Trader to commit to a large purchase of AMD stock for her portfolios. Trader had previously determined that AMD was a questionable investment but agreed to reconsider. Her reevaluation deemed the stock to be overpriced, but she nevertheless decides to purchase for her portfolios. Which standard was NOT broken? A) IV©–Responsibilities of Supervisors. B) VI(A)–Disclose of Conflicts. C) I©–Misrepresentation. D) IV(A)–Loyalty.
C
D
I’ll go C.
C
c
b
good job mcpass. i should know this, but does Loyalty only apply to loyalty toward the employer and not the clients?? The correct answer was D) IV(A)–Loyalty. IV(A) Loyalty was not broken because this standard involves going into a business that competes with your employer. IV© Responsibilities of Supervisors was breached because Trader broke several CFA Institute Standards which Cuff should have enforced. VI(A) Disclose of Conflicts was breached because Trader did not disclose that she was on AMD’s board. I© Misrepresentation was broken because Trader purchased stock for her clients even though she thought AMD was a questionable investment
What a crock of shit!
How is purchasing the stock misrepresentation?
F U is my answer for ethics going forward…
yeah. i agree. i thought this was a horsesh*t question as well. what’s teh deal with loyalty though. isn’t it for both clients and employers?
standard III is loyalty to clients Standard IV is loyalty to employers
thanks deep. sh*t. now we have to know the numbers?
that’s the worst question i’ve ever seen… cfa doesn’t throw stuff like that…that’s schweser for sure… those names sound very familiar too…
cfasf1 Wrote: ------------------------------------------------------- > thanks deep. sh*t. now we have to know the > numbers? No problem and I don’t think you need to know the all the sub numbers but having an idea what standard I, standard II, etc. are about is a good idea
agreed. bad question. think we have consensus. and yeah, it’s schweser.