Code of Ethics- Đố vui có khen

[NXD]

:hacker::hacker:

 

[Jonicute]

:hacker::hacker:

Bạn ơi, điều kiện ở phần gạch đỏ là "a must" hay chỉ là "high appreciated"? Mình vẫn thấy có một số sinh viên vừa ra trường đăng ký thi luôn! Đây là qui định mới à? Hay nó chỉ áp dụng cho 1 bộ gồm cả 3 Level?

Thank you!

 

[lannhu]

Nếu mock exam như thế này thì CFA level 1 không có gì khó cả. Bởi vì toàn kiến thức căn bản đã học trong trường đại học. Đọc cho hết, ôn cho kỹ là pass, he he

Ko biết thực tế thi cử thế nào chứ em nghe nói khó nuốt lắm, tỷ lệ pass level này chỉ khoảng 30-40% worldwide, trong đó đối tượng dự thi toàn có sỏi trong đầu ko hà!:wall: Nản quá!!:wall::wall:

 

[NXD]

Bạn ơi, điều kiện ở phần gạch đỏ là "a must" hay chỉ là "high appreciated"? Mình vẫn thấy có một số sinh viên vừa ra trường đăng ký thi luôn! Đây là qui định mới à? Hay nó chỉ áp dụng cho 1 bộ gồm cả 3 Level?

Thank you!

Bạn ơi, đây là điều kiện để lấy được CFA charter chứ không phải đầu vào.
Điều kiện kinh nghiệm bây giờ là 4 năm chứ không còn là 3 nữa.
Cái tài liệu này hơi outdate một tí ti:quiet:

 

[NXD]

Dwight Dawson, a CFA charterholder and portfolio manager at Ascott Investments, was recently appointed to the investments committee at Brightwood College. He will receive no compensation from Brightwood for serving on this committee. Another person at Ascott manages part of Brightwood’s endowment. Dawson does not inform Ascott’s compliance office of his involvement with Brightwood, because he does not believe doing so is necessary.

Brenda Hamilton, a CFA candidate, also works for Ascott as an investment analyst. Procedures established at Ascott prohibit personal trading in securities analyzed or recommended by Ascott. One of these securities is Horizon, a telecommunications firm. Hamilton buys 10 shares of Horizon for her infant son’s trust account. She believes that reporting this purchase to Ascott’s compliance officer is unnecessary because the amount of the transaction is small and is not for her own personal account.

Did Dawson or Hamilton’s actions violate CFA Institute Standards of Professional Conduct?

A) Dawson: No, Hamilton: No.


B) Dawson: Yes, Hamilton: No.


C) Dawson: No, Hamilton: Yes.


D) Dawson: Yes, Hamilton: Yes. :wall:


(this is level 2, 2008 practice)

Hú hu, còn ai trả lời không ta... ế quá đi:error:

 

[gaucon]

C. Dawson has not violated because Ascott have another person manages part of Brightwood's endowment, means that Brightwood is Ascott's subsidiary; while Hamilton used company's resources to invest although the amount of this transaction is small.

Note that I am not CFA candidate, hence I don't know what is the right answer. This is only my opinion.

 

[NXD]

C. Dawson has not violated because Ascott have another person manages part of Brightwood's endowment, means that Brightwood is Ascott's subsidiary; while Hamilton used company's resources to invest although the amount of this transaction is small.

Note that I am not CFA candidate, hence I don't know what is the right answer. This is only my opinion.

Sorry, không trùng khớp với ý kiến của bé nữa rồi! Mời chim se sẻ trả lời

 

[NXD]

Dwight Dawson, a CFA charterholder and portfolio manager at Ascott Investments, was recently appointed to the investments committee at Brightwood College. He will receive no compensation from Brightwood for serving on this committee. Another person at Ascott manages part of Brightwood’s endowment. Dawson does not inform Ascott’s compliance office of his involvement with Brightwood, because he does not believe doing so is necessary.

Brenda Hamilton, a CFA candidate, also works for Ascott as an investment analyst. Procedures established at Ascott prohibit personal trading in securities analyzed or recommended by Ascott. One of these securities is Horizon, a telecommunications firm. Hamilton buys 10 shares of Horizon for her infant son’s trust account. She believes that reporting this purchase to Ascott’s compliance officer is unnecessary because the amount of the transaction is small and is not for her own personal account.

Did Dawson or Hamilton’s actions violate CFA Institute Standards of Professional Conduct?

A) Dawson: No, Hamilton: No.


B) Dawson: Yes, Hamilton: No.


C) Dawson: No, Hamilton: Yes.


D) Dawson: Yes, Hamilton: Yes. :wall:


(this is level 2, 2008 practice)

The correct answer was D) Dawson:
Yes, Hamilton: Yes. Dawson violated Standard VI(A), Disclosure of Conflicts, by failing to inform Ascott of her involvement with Brightwood College. Dawson could reasonably be expected to be involved with investment policy decisions at Brightwood that could affect Ascott because Ascott manages a portion of Brightwood’s endowment. Hamilton also violated Standard VI(A), because she ignored a directive of her employer. Her purchase of Horizon stock has an appearance of impropriety. Hamilton could discuss the purchase of Horizon stock with her firm’s compliance officer and request an exception to the prohibition against personal trading in securities analyzed or recommended by Ascott.

 

[Jonicute]

Phần này khó lắm, để học sau đi các bạn ạ! Chúng ta học cái dễ trước đi để cùng thảo luận! Hơn nữa, mình nghĩ có khi mọi người cùng tham gia box này nên trao đổi lịch trình ôn tập và cùng nhau ôn, cùng nhau thảo luận thì tốt hơn! Chứ mạnh ai người ấy học sẽ nhanh nản! :flower1:

Về phần ethics mình cũng muốn tham gia nhưng cứ nhìn thấy nhiều chữ là đau đầu vì "ngộ chữ".

Mình có ý kiến: "nên học bất kỳ phần nào trừ ethics, ethics để học sau"

Anyone agree with me?

 

[NXD]

Phần này khó lắm, để học sau đi các bạn ạ! Chúng ta học cái dễ trước đi để cùng thảo luận! Hơn nữa, mình nghĩ có khi mọi người cùng tham gia box này nên trao đổi lịch trình ôn tập và cùng nhau ôn, cùng nhau thảo luận thì tốt hơn! Chứ mạnh ai người ấy học sẽ nhanh nản! :flower1:

Về phần ethics mình cũng muốn tham gia nhưng cứ nhìn thấy nhiều chữ là đau đầu vì "ngộ chữ".

Mình có ý kiến: "nên học bất kỳ phần nào trừ ethics, ethics để học sau"

Anyone agree with me?

Đó là một trong những lời khuyên sai lầm nhất mà mình từng nghe. Hầu hết những tài năng thi CFA không đạt đều vì undervalue CFA và nhất là undervalue môn ethics:041:

 

[Jonicute]

Đó là một trong những lời khuyên sai lầm nhất mà mình từng nghe. Hầu hết những tài năng thi CFA không đạt đều vì undervalue CFA và nhất là undervalue môn ethics:041:

Tuỳ! Với mình thì cần học như thế mới kịp deadline vào tháng 6/2009. Ai cũng biết Ethics và FSA ở book3 là 2 phần chiếm nhiều điểm nhất trong bài thi CFA nhưng với mình vì ethics là một thứ khó "nhai" nhất trong 6 cuốn sách nên để học sau.

Phương án học tập thứ 2 của mình để giải quyết ethics là mỗi ngày học một ít song hành cùng với các phần khác chứ ko trúi vào nghiên cứu nó theo đúng thứ tự trong sách. Dĩ nhiên, đạo đức kinh doanh và luật định thì phải được nghiên cứu trước nhưng đây là sách sắp xếp phù hợp với qui trình vận dụng thực tiễn công việc. Ethics là đạo đức kinh doanh mà! Còn! Nếu trong phạm vi học lý thuyết và hiểu bản chất vấn đề thì cũng chưa cần đạo đức nhiều lắm!

I think so! Everybody has their own way! Nothing problem!

 

[NXD]

Thách đố lần 4

Question: 10 - 29597
Joshua Rosenberg, CFA, covers Northwest Implements, a farm implement manufacturer, whose main factory is located in a sparsely-inhabited region six hours by automobile from the nearest airport. Northwest has its own corporate jet and a landing strip is located near the facility. When Rosenberg contacts Northwest’s management to gather information for a report he is preparing on the company, Northwest’s chief financial officer, Thomas Blake, invites Rosenberg to visit Northwest’s headquarters and meet with management. Blake offers to send Northwest’s corporate jet to pick Rosenberg up from an airport near Rosenberg’s home and to return him home the same evening. Rosenberg estimates that it would require three days for him to make the visit using commercial travel.
If Rosenberg accepts Blake’s offer and makes the trip to Northwest’s headquarters on the corporate jet, Rosenberg:
A) has not violated the Code and Standards if his trip was entirely devoted to business even if Northwest pays all of the expenses of the trip.
B) has not violated the Code and Standards if Rosenberg discloses the trip and the payment of his travel expenses in Rosenberg's report.
C) has not violated the Code and Standards as long as he reimburses Northwest for the cost of the trip.
D) has violated the Code and Standards if he proceeds to write the report.
:bigok::bigok::bigok::bigok::bigok::bigok::bigok::bigok::bigok::bigok:

 

[Jonicute]

Question: 10 - 29597
Joshua Rosenberg, CFA, covers Northwest Implements, a farm implement manufacturer, whose main factory is located in a sparsely-inhabited region six hours by automobile from the nearest airport. Northwest has its own corporate jet and a landing strip is located near the facility. When Rosenberg contacts Northwest’s management to gather information for a report he is preparing on the company, Northwest’s chief financial officer, Thomas Blake, invites Rosenberg to visit Northwest’s headquarters and meet with management. Blake offers to send Northwest’s corporate jet to pick Rosenberg up from an airport near Rosenberg’s home and to return him home the same evening. Rosenberg estimates that it would require three days for him to make the visit using commercial travel.
If Rosenberg accepts Blake’s offer and makes the trip to Northwest’s headquarters on the corporate jet, Rosenberg:
A) has not violated the Code and Standards if his trip was entirely devoted to business even if Northwest pays all of the expenses of the trip.
B) has not violated the Code and Standards if Rosenberg discloses the trip and the payment of his travel expenses in Rosenberg's report.
C) has not violated the Code and Standards as long as he reimburses Northwest for the cost of the trip.
D) has violated the Code and Standards if he proceeds to write the report.
:bigok::bigok::bigok::bigok::bigok::bigok::bigok::bigok::bigok::bigok:

I think C should be the most accurate answer of four. But i just checked it out with the study note, part named Standardsof Professional Conduct & Guidance: Duties to Clients and Prospective Clients, it appears to be explained that as follwing (green letters)

Members and Candidates must always act for the benefit of clients and place clients interests b4 their employers or their own interests. Members & Candidates must be loyal to clients, use reasonable care, exercise prudent judgment (prudent judgment nghi~a la` gi` nhi?) and determine and comply with their applicable fiduciary duty to clients (y' doan na`y la` gi` nhi?).

Clients interest always come first.

* Exercise the prudence, care, skill, and diligence under the circumstances that a person acting in a like capacity and familiar with such matters would use
* Manage pools of clients assets in accordance with the terms of the governing docs. such as trust docs. or investment management agreements.
* Make investment decisions in the context of the total portfolio
* Vote proxies in an informed and responsible manner. Due to cost benefit considerations, it may not be necessary to vote all proxies
* Clients brokerage, or "soft dollars" or "soft commissions" must be used to benefit the clients


I have two question needed to be explained more detail for these.

First, am i right if understanding "soft dollars" and "soft commissions" are acceptable under-table fee?

Second, Rosenberg has received a special care of Northwest while implementing his job responsibility. Even this special care is not appeared in "soft dollars" or "soft commissions" but actually it is the same thing. Because Northwest had to pay for jet energy cost from its headquarter to airport (both pick Rosenberg up at airport and return him home). I mean by this way or that way Northwest still has to pay a sum of black cost in the end for Rosenberg. And the black cost is obviously not tiny, three days to make the visit using commercial travel will cost considerable. Six hour to go by motorbike may be costless but...How about this kind of traveling cost? Can i consider them a kind of "soft commissions"?

Regards,

 

[Jonicute]

Oop, i want to change my choice. Final decision is answer B.

Every expense only accept legally if it is in written and showed up in Northwest financial reports.

I got number B.

 

[NXD]

Sorry, B, C are not correct answers.

Answer is 10) A
Standard IV(A3) requires members to maintain independence and objectivity. A visit by an analyst to an out-of-the-way site may be paid for by a client company host as long as the trip is all business and the analyst can maintain objectivity. Members should encourage clients to limit the use of corporate aircraft, but exceptions can be made if transportation would not otherwise be available or would be inefficient.
(Swcheser)

 

[NXD]

am i right if understanding "soft dollars" and "soft commissions" are acceptable under-table fee?

Không phải bạn ơi!

Soft Dollars
A means of paying brokerage firms for their services through commission revenue, as opposed to through normal direct payments (hard dollar fees).

The investing public tends to have a negative perception of soft dollar arrangements because they believe that buy-side firms should pay expenses out of their profits, rather than from investors' pockets. As such, the use of hard dollar compensation is becoming more common.

Investopedia Says...
For example, a mutual fund may offer to pay for research from a brokerage firm by executing trades at the brokerage.

Let's say, that Cory's Large-Cap Value Fund (CLCV) wants to buy some research from XYZ brokerage firm. CLCV may agree to spend at least $10,000 in commissions for brokerage services in return for research from XYZ. This would represent a soft dollar payment. Alternatively, if CLCV wanted to simply buy the research from XYZ and not agree to any kind of soft dollar fee, it might have to pay the brokerage firm $7,000 in "hard dollars" (cash) for the service.

 

[NXD]

Bonus!

What are soft dollars and why should investors be aware of them?

The term soft dollars refers to the payments made by mutual funds (and other money managers) to their service providers. The difference between soft dollars and hard dollars is that instead of paying the service providers with cash (i.e. hard dollars), the mutual fund will pay in-kind (i.e. with soft dollars) by passing on business to the brokerage.

Here is an example: say Wittenberg LLP provides MegaMutual Fund with computer equipment and software for transmitting investment information. Under an agreement or understanding between the two firms, MegaMutual will pay for these services by directing trades through to Feral Hitch, a large brokerage firm. Feral Hitch will charge an added fee onto the trades from MegaMutual. The money from these fees will then be sent to Wittenberg which, in turn, gets its compensation for its services to MegaMutual. The added fee usually amounts to tenths of a cent, but because MegaMutual trades billions of shares a day, the amount adds up to real money - the fee it would've had to pay in hard dollars.

Soft dollars are a way for mutual funds to get services without having to pay for them directly. A hard dollar payment would require a check to be issued and recorded on MegaMutual's books, and the corresponding expense to be passed onto investors via the fund's annual fee. Under soft dollars, the expenses are hidden in the trading costs. While the practice is not illegal and the end result is the same (the investors pay), it does not help investors analyze the costs of using one mutual fund versus another.

Soft dollars became more of an issue as Wall Street activity came under greater scrutiny in the wake of the dotcom bust. However, soft dollars have been around a very long time and there are rules that govern their use. According to Harold Bradley (senior vice president of American Century Investments), fund companies do an estimated $10 billion annually in soft dollar business. And the Association for Investment Management and Research has established standards for the use of soft dollars to clarify and limit potential abuses. For more information, here is a link to their site: http://www.aimr.org/featuring/modules/softdollar/readings.html.

 

[Jonicute]

Sorry, B, C are not correct answers.

Answer is 10) A

Standard IV(A3) requires members to maintain independence and objectivity.

Which words in yr question show that Rorsengberd had maintained his independence and objectivity? I'd prefer you made it clear but if you can't, pls feel free moving to my next questions :sorry:

A visit by an analyst to an out-of-the-way site may be paid for by a client company host as long as the trip is all business and the analyst can maintain objectivity.

In this case, Northwest expressed their host by sending aircraft to pick Rosengberd up and return him home, right?

Members should encourage clients to limit the use of corporate aircraft,

Rosengberd hasn't encouraged Northwest but accept its offer right away. He actually hasn't try to limit the use of corporate aircraft. And, in the real case, i think anyone involve in it also act and decide like Rosengberd. So, it is meaningless this point for the case study.

but exceptions can be made if transportation would not otherwise be available or would be inefficient.
(Swcheser)

Maybe six hour going to Northwest by motorbike is not available and not efficient. So, i think maybe this point is the most reasonable evident explain why we should select question A

 

[Jonicute]

Let's say, that Cory's Large-Cap Value Fund (CLCV) wants to buy some research from XYZ brokerage firm. CLCV may agree to spend at least $10,000 in commissions for brokerage services in return for research from XYZ. This would represent a soft dollar payment. Alternatively, if CLCV wanted to simply buy the research from XYZ and not agree to any kind of soft dollar fee, it might have to pay the brokerage firm $7,000 in "hard dollars" (cash) for the service.

I feel "soft dollar" has something in common with the "goodwill"

 

[Jonicute]

The term soft dollars refers to the payments made by mutual funds (and other money managers) to their service providers. The difference between soft dollars and hard dollars is that instead of paying the service providers with cash (i.e. hard dollars), the mutual fund will pay in-kind (i.e. with soft dollars) by passing on business to the brokerage.

Vd: nhà đầu tư X cần thực hiện giao dịch mua cổ phiếu OTC mã là A của công ty B. Nhà đầu tư X có thể trực tiếp mua cổ phiếu A từ công ty B với tiền mua là 10 đồng. Tuy nhiên một số cổ đông của công ty B lại uỷ thác lại cho công ty Y, đó là một công ty quản lý sổ cổ đông thực hiện việc quản lý sổ cổ đông cho mình và làm luôn công tác bán cổ phiếu của họ nếu đạt mức giá họ kỳ vọng bán. Công ty B sẽ đòi Y trả cho họ số tiền cứng "hard dollar" là giá trị bán cổ phiếu đáp ứng mức kỳ vọng của họ, công ty B giành cho công ty Y một khoản phí về chuyện họ thực hiện bán cổ phiếu OTC giúp đó gọi là "soft dollars" nó không nằm trong "direct payment" mà nhà đầu tư phải trả cho công ty X. Trong quá trình giao dịch này, "soft dollar" là số tiền nằm ở nhà môi giới là công ty Y, "hard dollars" là tiền chạy về B. Cả soft và hard dollar đều từ "Investor pocket" chạy ra.