Standard V (A) is known as ________.
Answer(s): A
Standard IV (A) deals with the Investment Process. Standard III (B) deals with Duty to Employer. Standard IV (B.3) deals with Fair Dealing. Standard IV (B) deals with Interactions with Clients and Prospects. Standard V (A) deals with Prohibition against Use of Material Nonpublic Information. Standard IV (B.5) deals with Preservation of Confidentiality. Standard II (B) deals with Professional Misconduct.
Which of the following is/are true about the Performance Presentation Standards?
Answer(s): C
All of the answers are true of the PPS standards.
Urvashi Kulkarni is an investment manager with Amritrust Bank, a mid-size investment bank. Urvashi is managing the pension plan assets of Megalith ICs, a maker of cloned integrated chips for PCs. Megalith is planning a take-over of Microchip Corp., a fast-growing rival which recently patented a technology which promises to change the face of chip cloning business. The pension plan assets of Megalith consist of 17% of Microchip's stock. Megalith's management has decided to buy up to 33% of the stock in a tender offer and transfer the 17% stock holdings of the pension plan to the company investment account. So it instructs Urvashi to sell the Microchip stock to Megalith's general account at the current market price and invest the cash in other stock as she feels appropriate. Urvashi knows that this action and the subsequent takeover of Microchip will substantially elevate Megalith's stock price, creating shareholder value. Urvashi should
Answer(s): B
Urvashi owes fiduciary loyalty to the plan beneficiaries, not the management of Megalith. She must not sell Microchip's stock prior to the tender offer since in doing so, she will be selling the plan assets at a much lower price than would be available once the tender is floated. While such an action benefits Megalith shareholders, it harms the plan beneficiaries. Urvashi owes absolutely no allegiance to Megalith shareholders. Standard IV (B.1) - Fiduciary Duties - and the Topical Study, "Fiduciary Duties."
Standard III includes which of the following ?
Answer(s): F
Standard III deals with Obligation to Inform Employer of Code and Standards, Duty to Employer, Disclosure of Conflicts to Employer, Disclosure of Additional Compensation Arrangements and Responsibilities of Supervisors.
Andrea, a portfolio manager for XYZ Investment Management Company, a registered investment organization that advises investment companies and private accounts, was promoted to that position three years ago. Bates, her supervisor, is responsible for reviewing Andrea's portfolio account transactions and her required monthly reports of personal stock transactions. Andrea has been using Jonelli, a broker, almost exclusively for portfolio account brokerage transactions. For securities in which Jonelli's firm makes a market, Jonelli has been giving Andrea lower prices for personal purchases and higher prices for personal sales than Jonelli gives to Andrea's portfolio accounts and other investors. Andrea has been filing monthly reports with Bates only for those months in which she has no personal transactions, which is about every fourth month. Which of the following applies/ apply?
Answer(s): G
This question involves three Standards. Andrea, the portfolio manager, has been obtaining lower prices for her personal securities transactions than she gets for her clients, which is a violation of Standard IV (B.1), Fiduciary Duties. In addition, she violated Standard II (B), Professional Misconduct, by failing to adhere to company policy and hiding her personal transactions from her firm. Andrea's supervisor, Bates, violated Standard III (E), Responsibilities of Supervisors, by failing to enforce the procedures for reporting personal trading. Therefore, Statements I, II and III are all correct.
Post your Comments and Discuss CFA CFA I exam dumps with other Community members:
DynamoDB
S3
Cognito
RDS
EFS
/sbin/init
/etc/inittab
/etc/rc.d
/etc/init.d
/lib/init.so
/etc/rc.d/rcinit
/proc/sys/kernel/init
/boot/init
/bin/init
Amazon S3 Intelligent-Tiering
S3 Lifecycle
S3 Glacier Flexible Retrieval
Amazon Athena
Amazon EFS
EC2 instance store
ElastiCache for Redis
S3 Glacier Deep Archive
AWS Lake Formation
Amazon EMR Spark jobs
Amazon Kinesis Data Streams
Amazon DynamoDB
Defender for Endpoint
Defender for Identity
Defender for Cloud Apps
Defender for Office 365
S3 Object Lock
SFTP
AWS Transfer Family
Amazon SQS
API Gateway
Lambda
usage plan
AWS WAF
Amazon ECS
Application Load Balancer
AWS Global Accelerator
Network Load Balancer
EC2
Auto Scaling group
CloudFront
ALB
AWS PrivateLink
CRR
SSE-S3
Athena
SSE-KMS
RDS Custom for Oracle
s3:GetObject
Amazon OpenSearch Service
CloudWatch Logs
Kinesis Data Firehose
Kinesis
S3 bucket
SQS
AWS Lambda
AWS Secrets Manager
AWS Systems Manager OpsCenter
secretsmanager:GetSecretValue
seq
for h in {1..254}
for h in $(seq 1 254); do
Kinesis Data Streams
Amazon Redshift
secrets:GetSecretValue
aws:PrincipalOrgID
"aws:PrincipalOrgID": "o-1234567890"