Mock Exam Ethics

CFA Level III
#1

Hi, For question 10 (item set 2), there’s a choice between which set of accounts should give priority to clients’ accounts. Something like: C: All accounts in which Heritage personnel are beneficial. D: All accounts in which Heritage personnel are beneficial and all accounts registered in the name of Heritage. I picked C but have no idea if I got it right from the PDF “so called” answer. Any idea? Many thanks. Dorian

#2

all accounts registered in the name of heritage can include other clients, that you would be putting in disadvantage? just guessing, actually I don´t know what they mean with “accounts registered in the name of Heritage”, can mean a lot of things

#3

hala_madrid Wrote: ------------------------------------------------------- > all accounts registered in the name of heritage > can include other clients, that you would be > putting in disadvantage? > > just guessing, actually I don´t know what they > mean with “accounts registered in the name of > Heritage”, can mean a lot of things yeah i was wondering myself. I thought acounts registered in the name of heritage are prop trading and should be traded after client accounts, but answer implies C. I dont really understand why

#4

It was A. The interests of clients must be given priority over accounts in which Heritage’s employees are beneficial owners

#5

bigwilly but that doesnt cover the case where Heritage is beneficial owner (as corporation)

#6

It was A. I only got one wrong in Ethics and it was the stupid HF one. :frowning:

#7

bigwilly Wrote: ------------------------------------------------------- > It was A. I only got one wrong in Ethics and it > was the stupid HF one. :frowning: Can you explain why All accounts in which Heritage personnel are beneficial and all accounts registered in the name of Heritage. Did i misinterpret “registered in the name of heritage”?

#8

If the are registered in the name of Heritage it doesnt mean that its not a commingled account. Say I have Bigwilly’s SCV Fund, and I have 90 investors in my fund, its registered in my name but its not the Company’s money.

#9

bigwilly Wrote: ------------------------------------------------------- > If the are registered in the name of Heritage it > doesnt mean that its not a commingled account. > Say I have Bigwilly’s SCV Fund, and I have 90 > investors in my fund, its registered in my name > but its not the Company’s money. doh :(, so what would the account be called if it is prop for Heritage :frowning: