Question #24
Reading: Reading 42.6 Standards of Professional Conduct Guidance for Standards VI
PDF File: Reading 42.6 Standards of Professional Conduct Guidance for Standards VI.pdf
Page: 11
Status: Unattempted
Question
Gordon McKinney, CFA, works in the trust department of a bank. The bank's trust account holds a large block of a particular company. McKinney learns from a market news service that this company is going to buy back one million shares at a 15% premium to the market price on a first-come-first-served basis. McKinney immediately tells his mother-in-law to tender her shares but waits until the end of the day to tender the trust's shares. McKinney has most likely violated the Standard concerning:
Answer Choices:
A. material nonpublic information
B. priority of transactions
C. loyalty. Hunter Harrison, CFA, has recently been promoted to Chief Investment Officer (CIO) of Ironclad Investments, an investment adviser and pension consultant for medium and large corporate pension clients. Ironclad recently hired a compliance officer to update its compliance manual, which is consistent with the CFA Institute Code and Standards. Harrison serves as a director on several non-profit and corporate boards of directors, some of which have their pension assets managed by Ironclad. As part of his new job duties, Harrison will
No explanation available for this question.