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Free CFA-Level-I Exam Braindumps (page: 60)

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Miller heads the research department of a large brokerage firm. The firm has many analysts, some of whom are subject to the Code and Standards. If Miller delegates some supervisory duties, which statement best describes her responsibilities under the Code and Standards?

  1. Miller's supervisory responsibilities do not apply to those subordinates who are not subject to the Codes and Standards.
  2. Miller no longer has supervisory responsibility for those duties delegated to her subordinates.
  3. Miller retains supervisory responsibility for those duties despite her delegation of some duties.
  4. AIMR's Standards prevent Miller from delegating supervisory duties to subordinates.

Answer(s): C

Explanation:

Under Standard III (E), Responsibilities of Supervisors, members may delegate supervisory duties to subordinates but such delegation does not relieve members of their supervisory responsibilities. Moreover, whether or not Miller's subordinates are subject to AIMR's Code and Standards is irrelevant to her supervisory responsibilities. Thus, Miller still retains supervisory responsibilities.



Which of the following can be found in Standard III?

  1. Members shall not misrepresent investment performance.
  2. Members shall exercise diligence and thoroughness in making investment recommendations or in taking investment actions.
  3. Members shall not participate in any professional conduct involving dishonesty, fraud, deceit, etc.
  4. Members shall deliver a copy of the Code to their employer.
  5. Members shall not knowingly participate or assist in any violation of laws, rules, or regulations.

Answer(s): D

Explanation:

Standard III states that members shall deliver a copy of the Codes and Standards to their employer if the employer does not have a copy.



Level ________ verification assures that all of the firm's actual, discretionary, fee-paying portfolios are included in at least one composite.

  1. V
  2. II
  3. IV
  4. I
  5. III

Answer(s): D

Explanation:

Level I Verification requires that each of the firm's discretionary, fee-paying portfolios is included in at least one composite and that the firm's procedures for assigning portfolios to composites are reasonable and have been consistently applied over time.



Level ________ verification applies to specific composites.

  1. 0
  2. IV
  3. II
  4. I
  5. III

Answer(s): C

Explanation:

Level I verification applies to all firm composites. Level II verification requires a Level I verification at least on the specific composites being verified at Level II. (Note: There are only two levels of verification.)






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