Standard ________ pertains to fair dealing with customers and clients.
Answer(s): B
Standard IV (B.3) states: "Members shall deal fairly and objectively with all clients and prospects when disseminating investment recommendations, disseminating material changes in prior investment recommendations and taking investment action."
Social investments:
In a pension plan, the first and foremost duty of the fiduciary is to the plan participants and their beneficiaries rather than to the plan sponsor that has the power to hire and fire the investment manager. Consequently, if urged to make investments that might be of direct benefit to a sponsoring community or to the community at large, the manager must ensure that such investments are legal and do not impair the integrity of the funds in question or the financial security of the participants/beneficiaries.
Which of the following are considered basic characteristics of a security and must be included in research reports?
Answer(s): E
Members should include the following information in research reports:- expected annual rate of return- annual amount of income expected (current and future)- current rate of income return of yield to maturity- degree of uncertainty associated with cash flows- degree of marketability/liquidity- business, financial, political, sovereign and market risks
Fundamental Responsibilities is dealt with under:
Answer(s): A
Fundamental Responsibilities is dealt with under Standard I.
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