In the context of the Code and Standards, which of the items from the background check would most likely indicate that Zonding should not have hired Cooken?
A potential client contacted an employee and wanted detailed performance records of client accounts so he can decide whether to invest with the firm." Basch goes on to say that she is responsible for developing a presentation on the differences between the Prudent Investor and the Prudent Man rules for...
Did Luna violate the CFA Institute Standards of Professional Conduct and the CFA Institute Soft Dollar Standards by using soft dollar commissions to pay TIM's software subscription costs to StockCal and/or Add-Invcst?
For the past 15 years, Susan Luna, CFA, Kyle Lawson, CFA, and Matt Miller. CFA, have worked together as equity analysts and then equity portfolio managers in the investment management division (BIMCO) of the Broadway Life Insurance Company. For the past five years, the three associates have worked together managing...
By using the information obtained as a result of participating in the drug study, did Taylor likely violate any CFA Institute Standards of Professional Conduct?
Mary Montpicr is an equity analyst with World Renowned Advisors. The firm provides investment advice and financial planning services globally to institutional and retail clients. Shortly after the company opened an office in Malaysia, Montpier's supervisor in the New York office. Rick Reynolds, asked her to relocate, and Montpier agreed....
Chester Brothers, LLC, is an investment management firm with $200 million in assets under management. Chester's equity style is described to clients as a "large cap core" strategy. One year ago, Chester instituted a new compensation plan for its equity portfolio managers. Under this new plan, each portfolio manager receives an annual bonus based upon that manager's quarterly performance relative to the S&P 500 index. For each quarter of aut-performance, the manager receives a bonus in the amount of 20% of his regular annual compensation. Chester has not disclosed this new plan to clients. Portfolio managers at Chester are not bound by non-compete agreements.
Chester Brothers, LLC, is an investment management firm with $200 million in assets under management. Chester's equity style is described to clients as a "large cap core" strategy. One year ago, Chester instituted a new compensation plan for its equity portfolio managers. Under this new plan, each portfolio manager receives...
Using only the information found in Exhibit 1 and Exhibit 2, which of the following is most indicative of lower earnings quality?
High Plains' average net operating assets at the end of 2008 and 2007 was $977.89 million and $642.83 million, respectively. Using only the information found in Exhibit 1 and Exhibit 2, which of the following is most indicative of lower earnings quality?A . High Plains' discretionary expenses.B . The change...
Does High Plains' accounting treatment of its capital leases and receivable sale lower its earnings quality?
High Plains' average net operating assets at the end of 2008 and 2007 was $977.89 million and $642.83 million, respectively. Does High Plains' accounting treatment of its capital leases and receivable sale lower its earnings quality?A . Both treatments lower earnings quality.B . The treatment of capital leases lowers earnings...
According to CFA Institute Standards of Professional Conduct, which of the following best describes the actions Holly should take with regard to the desk pen and the concert tickets offered to him by the CEO of BlucNote?
Pat Wilson, CFA, is the chief compliance officer for Excess Investments, a global asset management and investment banking services company. Wilson is reviewing two investment reports written by Peter Holly, CFA, an analyst and portfolio manager who has worked for Excess for four years. Holly's first report under compliance review...
Which of the following is least likely to prevent earnings manipulation?
High Plains' average net operating assets at the end of 2008 and 2007 was $977.89 million and $642.83 million, respectively. Which of the following is least likely to prevent earnings manipulation?A . The independent audit.B . SEC certification filed by High Plains' CEO and CFD . High Plains' bond covenants.View...
What is the most likely effect of High Plains' revenue recognition policy on net income and inventory turnover?
High Plains' average net operating assets at the end of 2008 and 2007 was $977.89 million and $642.83 million, respectively. What is the most likely effect of High Plains' revenue recognition policy on net income and inventory turnover?A . Net income and inventory turnover are overstated.B . Only net income...
According to Standard IV Duties to Employers, which of the following is most likely required of Swamy?
Maria Harris is a CFA® Level 3 candidate and portfolio manager for Islandwide Hedge Fund. Harris is commonly involved in complex trading strategies on behalf of Islandwide and maintains a significant relationship with Quadrangle Brokers, which provides portfolio analysis tools to Harris. Recent market volatility has led Islandwide to incur...