Reading 58: Guidance for Standards I–VII

According to Standard I(A) Knowledge of the Law, if a member resides in a country with strict securities laws but does business in a country with less strict laws, which laws must the member follow?

A member suspects a client is engaging in illegal money laundering activities. According to Standard I(A) Knowledge of the Law, the member should most likely:

Under Standard I(B) Independence and Objectivity, which of the following gifts is least likely to require disclosure to an employer?

An analyst prepares a research report paid for by the subject firm. The compensation is a flat fee not tied to the report's conclusion. To comply with Standard I(B) Independence and Objectivity, the analyst must:

Which of the following actions constitutes a violation of Standard I(C) Misrepresentation?

Standard I(D) Misconduct prohibits members from engaging in conduct involving:

According to Standard II(A) Material Nonpublic Information, information is considered 'material' if:

An analyst combines public financial reports with non-material nonpublic information gathered from interviewing employees to form a buy recommendation. This action is:

Which of the following is a violation of Standard II(B) Market Manipulation?

Standard III(A) Loyalty, Prudence, and Care requires members to:

Regarding proxy voting, Standard III(A) Loyalty, Prudence, and Care implies that members:

Under Standard III(B) Fair Dealing, 'fairly' implies:

If a firm offers different levels of service to clients, Standard III(B) Fair Dealing requires:

Standard III(C) Suitability requires that before making an investment recommendation, a member must:

When managing a portfolio to a specific index mandate, Standard III(C) Suitability requires the manager to:

A client requests a trade that the investment manager knows is unsuitable based on the client's IPS. The manager determines the trade will have a material impact on the portfolio's risk profile. The manager should:

According to Standard III(D) Performance Presentation, members must make reasonable efforts to ensure performance information is:

Standard III(E) Preservation of Confidentiality requires members to keep client information confidential unless:

Under Standard IV(A) Loyalty, a member leaving an employer must:

A member wants to engage in independent practice for compensation. Under Standard IV(A) Loyalty, the member must:

Standard IV(B) Additional Compensation Arrangements requires written consent from:

Standard IV(C) Responsibilities of Supervisors requires members to:

If a member declines supervisory responsibility because the firm's compliance procedures are inadequate, the member has:

Standard V(A) Diligence and Reasonable Basis requires members to:

When relying on third-party research, Standard V(A) suggests members should:

Standard V(B) Communication with Clients requires distinguishing between:

According to Standard V(C) Record Retention, records supporting investment analyses should be:

In the absence of regulatory guidance, the Standards recommend retaining records for at least:

Standard VI(A) Disclosure of Conflicts requires disclosure of matters reasonably expected to impair:

Regarding stock ownership, Standard VI(A) suggests the most common conflict requiring disclosure is:

Standard VI(B) Priority of Transactions states that investment transactions for clients and employers must have priority over:

To comply with Standard VI(B) Priority of Transactions, family accounts that are client accounts should be treated:

Standard VI(C) Referral Fees requires disclosure of:

Standard VII(A) Conduct as Participants in CFA Institute Programs prohibits:

Under Standard VII(B) Reference to CFA Institute, which statement is permitted?

A firm has a policy prohibiting all personal trading by employees. This policy:

Regarding 'soft dollars', Standard III(A) requires that brokerage commissions be used to:

A member copies a proprietary valuation model from his firm to use at a new job. This violates:

If a member is an independent contractor, the duty of loyalty in Standard IV(A) requires abiding by:

Standard V(B) implies that when using quantitative models, members should:

Which of the following is considered a 'best practice' for Standard I(D) Misconduct?

Under Standard VI(B), if a member is a beneficial owner of an account, that account acts as a:

Regarding 'whistle-blowing', the Standards:

Standard III(B) Fair Dealing requires that when a recommendation changes, clients who are unaware:

Standard I(B) suggests that regarding corporate travel, members should:

Under Standard I(A), if a member dissociates from a violation but the illegal activity continues, the member may need to:

Standard II(A) applies to:

Standard VII(A) prohibits:

Regarding Standard V(A), 'reasonable basis' generally requires:

Standard VI(B) suggests that regarding personal trading, members should: