Ethical and Professional Standards Paper 2

1

Which of the following statements about a CFA charter holder or candidate is in compliance with the Code and Standards?





2

Mary Walters, CFA, is a trust officer at a regional branch of Money Center bank. She has entered into a referral agreement whereby she will refer clients to Bob Sear, a tax attorney who she believes is the best in the business. Sear has told Walters that he will do the tax work on her children’s trust, created by their grandparents, in return for such referrals. According to the CFA Institute Code and Standards, Walters should disclose the arrangement to:





3

Ronaldo Jenkins, CFA, is chief investment officer of Wind watch Advisors, a discretionary investment advisory firm. With over 15 years’ experience in various asset classes, Jenkins is head of Windwatch’s proxy voting committee. He serves on the boards of several nonprofit organizations and public companies and advises local municipal governments. During a recent search for an investment bank for a fixed income offering on behalf of a municipality, Jenkins learns in confidence that an investment bank, which is a large subsidiary of a publicly traded commercial bank owned by Windwatch clients, is experiencing financial difficulties and will be shut down. According to the CFA Institute Standards of Professional Conduct, Jenkins is least likely permitted to:





4

While visiting Cassori Company, Mark Ramsey, CFA, overhears management make comments that are not public information not really meaningful by themselves. Combining this information his own analysis and other outside sources, Ramsey decides his recommendation on Cassori from “Buy” to “Sell.” According CFA Institute Standards of Professional Conduct, Ramsey:





5

Compliance with the Global Investment Performance Standards likely requires firms to:





Result

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