Q1) compensation policy comprised of Flat fee + bonus component. it has a flat fee to avoid conflict of interest … however the analyst was promised a certain bonus if the clients portfolio exceeded a certain % in given year. did not diclose this? is it a violation? Q2) Analyst researches and offers a recommendation for Emerging market fund (EMF fund). he had also held EMF fund it in his retirement account all this while, before recommending it to clients. i faintly recall that there was this Q which asked for if he violated the CFA rules becoz he should not have traded in securities in which he conducts research (without disclosing the conflict of interest)? anyone can add anything to this?? i dont recall the exact thing. Q3) a Q on communication (First Q on morning session) - i thought it should have been C: IPS shud be reviewed annually was a violation of CFA rules (since this wud have been the case if followed by a disclaimer that unless no change in client risk / return profile takes place) … atleast this is what i felt. All other options seemed correct to me …
- Yes Yes 2. Do not trade in security before issuing a report 3. In this case communication policy was correct. fourth option mentioned that they can have ad-hoc meetings.