CFA_Ethics_13

Which of the following statements is most correct under the Code and Standards?

A)Consent from the employer is necessary to permit independent practice that could result in compensation or other benefits in competition with the member's employer.
B)CFA Institute members are prohibited from undertaking independent practice in competition with their employer.
C)Written consent from the outside prospective client is necessary to permit independent practice that could result in compensation or other benefits in competition with the member's employer.
D)Members are prohibited from making arrangements or preparations to go into competitive business before terminating their relationship with their employer.

answer : A

CFA_Ethics_12

Jones, Inc., is attempting to qualify for Global Investment Performance Standards (GIPS) compliance. Regarding mandatory disclosures, which of the following disclosures will be insufficient and thus prevent Jones, Inc., from claiming compliance?
A)Jones' definition of the firm is that they are a brokerage/portfolio management firm registered with the Securities and Exchange Commission (SEC).
B)Jones discloses all firm assets under active management each period.
C)Jones makes available a complete list and description of all of the firm’s composites.
D)Jones discloses all non-fee paying portfolios that are included in composites and notes the percentage of composite assets that are non-fee paying portfolios.

answer : B

CFA_Ethics_11

Calvin Doggett, CFA, has been contacted by the CFA Institute Professional Conduct Program (PCP) regarding allegations that he has taken investment actions that were unsuitable for his clients. Doggett is questioned by PCP concerning the identity of his clients he considered suitable for investing in a very risky start-up company that eventually went bankrupt. Doggett will:

A)not violate the Code and Standards only if he reveals the financial condition and investment objectives of his clients on an anonymous basis and does not reveal the names of his clients to PCP.
B)not violate the Code and Standards by refusing to reveal information concerning his client's investments to the PCP.
C)violate the Code and Standards by fully cooperating with a PCP investigation if it means revealing confidential information.
D)not violate the Code and Standards by revealing the names, financial condition and investment objectives of his clients to PCP.

answer : D