Ethyl Redd, CFA, recently joined Bloomington Investments as a research analyst. After spending an afternoon looking through the research teams archives, Redd is not sure Bloomington maintains the records that support the teams analysis and recommendations for the minimum 7-year period called for by Standard V©, Record Retention. What is Redds most appropriate course of action? A) Keep her own copies of the relevant records and maintain them at home for a minimum 7-year holding period. B) Review the firms record retention procedures with her supervisor or compliance officer to ensure that they comply with the Standard, or suggest ways to bring them into compliance. C) Decline to participate in any new research until she can verify that the firm is in compliance with the Standard. D) Document her opinions about the firms record keeping procedures for her own records in case any enforcement action arises. When Wes Smith first joined Advisors, Inc., he was excited that all the analysts at the firm had the CFA designation. In letters to prospective clients, he states that this ensures that Advisors can provide better service than their competitors. With respect to Standard VII(B), Reference to CFA Institute, the CFA Designation, and the CFA Program, this is: A) a violation because he cannot guarantee better service. B) a violation because he mentions the CFA designation in the letter. C) a violation for both mentioning the CFA designation and saying the firm can guarantee better service. D) not a violation. Jan Hirsh, CFA, is employed as manager of a college endowment fund. The colleges board of directors has recently voted to consider divesting from companies located in a country that has a poor civil rights record. Hirsh has personal investments in several firms in the country. Hirsh needs to: A) do nothing since the board has not made a decision yet. B) disclose her ownership in the stocks to her supervisor only. C) disclose her ownership in the stocks to the board of directors only. D) disclose her ownership in the stocks to both her supervisor and the board


7 year period is recommendation, its not MUST… is A, answer…( though keeping them at home I don’t know)

TV you’re right. I got the first one right, but it seems like dissociating oneself is not wrong? The second one. This is news to me, you cannot promise better service?? I know promising performance is a big violation, but better service too?

I think it falls in line with guaranteeing anything. such as “we can provide all your investment needs”. I always just look to see if they look like they are promising something or if they are just providing an opinion. if this test was 100% ethics I would feel a lot better, unfortunately the rest of it is still kicking me hard

I think the key word is “ensures” better service. We are not supposed to exaggerate the CFA charter’s status in this manner. I’m going with B, A, D…not sure about the last one though. I wouldn’t worry too much about ethics though, anyone who has done the Mocks and Schweser knows that if you can get 70s on Book 6 ethics you can get 85+ on CFAI mocks. The questions are much shorter and don’t try to find ridiculous ways for you to get it wrong. IMHO Schweser needs to seriously look into making its ethics sections match the exam format a bit bitter…and they need to cut down on the calculation intensive Qs also.

B A C/D, not sure on # 3 please post REAL answers, thanks

C for the last one?

I would think A for the last as Hirsh has personal investments there which are not in any way related to the endowment funds’ investments

B A Last one is A. Explaination is nothing has been done yet, board is considering still.

BA last one… I have no idea. I actually thought A. Most likely wrong