Monday, October 20, 2008


Standard VI(B), Priority of Transactions, applies to transactions an analyst takes on behalf of:

A) his employer.
B) his clients.
C) personal accounts.
D) all of these.


Miller, CAIA, and Level II CFA candidate, heads the research department of a large brokerage firm. The firm has many analysts, some of whom are subjected to the CFA Institute Code of Ethics and Standards of Professional Conduct. If Miller delegates some of her supervisory duties, which statement best describes her responsibilities under the CFA Institute Code and Standards?
A) CFA Institute Standards prevent Miller from delegating supervisory duties to subordinates.
B) Miller's supervisory responsibilities do not apply to those subordinates who are not subjected to the CFA Institute Code and Standards.
C) Miller retains supervisory responsibilities for those duties delegated to her subordinates.
D) Miller no longer has supervisory responsibility for those duties delegated to her subordinates.


Which of the following is NOT expressly prohibited by Standard I(C), Misrepresentation?

A) misrepresenting the services a member is capable of performing.
B) misrepresenting a member’s qualifications or the qualifications of their firm.
C) misrepresenting a member’s academic or professional credentials.
D) providing information on guaranteed investment products.


An analyst who routinely purges the files that support his research and recommendations:

A) is acting in accordance to Standard III(E), Preservation of Confidentiality.
B) is acting in accordance to Standard IV(A), Loyalty to Employer.
C) may be violating Standard II(A), Material Nonpublic Information.
D) may be violating Standard V(C), Record Retention.