29 Updated CFA Level 2 Mock Exam Free Questions and Answers 2015 on Ethics

Although you have a strong ethics background in level 1, you still have to struggle with the additional materials of this section in level 2. Be careful! They’re significant enough to make difference between a pass and a fail. Practise exercises frequently and early in your revision with 29 Updated CFA Level 2 Mock Exam Free Questions and Answers 2015 on Ethics. You’ll be able to conquer the new principles and concepts of ethics in level 2 and solidify the olds in level 1 as long as you start early and develop insights over time. Hope you become fully comfortable with our totally free, quick and effective CFA practice exam!

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The Investment Manager should assure that, over time, all Clients receive the benefits of Research purchased with Client Brokerage.1. Agency Trades. ok to use client brokerage to purchase research that is not useful for that client now, but must ensure in other times this client will be compensated 2. principal trade: client brokerage must beneficial the client if not manager must obtain prior consent from client to use it for other accounts

• present names on report
• record retention min period
• relationship with client in agency and principal trade
• CFA logo for candidates and charter holder

office equipment - nofinancial tv - yes if use in decision makingbloomberg - no even it is used for client acceess to info, only yes if used for decicion making. if both then sharesoftware and computer- share, must be reevaluate annually.

• interaction with IB
• present names on report
• record retention min period
• soft dollars use

only require disclosure if firm manage or co-manage the deal

• record retention min period
• soft dollars use
• interaction with IB
• disclosure of firm in ipo deal

not allowed unless extreme hardship. must provide personal investment of self and family at least annually

• interaction with IB
• trade against recommedation
• record retention min period
• present names on report

no

• freq of update report and how to discontinue coverage
• invite your clients or brokers to attest for your performance is yes or no
• new prudent investor stated no investment is imprudent?
• eliminate analysis that is not used by the firm generally is ok or not

prohibit under all circumstance without the permission of the investor

• CFA logo for candidates and charter holder
• disclose confidential info under loyal, prudence and care
• disclosure of soft dollar standard must address what?
• disclosure of firm in ipo deal

can accept travel expense but nothing else

• performance presentation as a team
• sharing report with subjected company
• independent and objectivity as speaker at conference
• supervisor responsibility apply to whom

quarter and must issue a final report to clients

• sharing report with subjected company
• record retention min period
• duty to report cfa investigation
• freq of update report and how to discontinue coverage

recommendation can be group concensus. the boss can put name on report if he invloved in the process

• soft dollars use
• interaction with IB
• present names on report
• record retention min period

must disclose the achieved result was a team effort and can only claim for a portion in this result

• interaction with IB
• record retention min period
• performance presentation as a team
• present names on report

yes, because new prudent only evaluate the portfolio as a whole

• can investment manager include high risk investment into portfolio of some conservative investors but the portfolio overal has no restriction on high risk?
• new prudent investor stated no investment is imprudent?
• what action investment manager shold do in client directed brokerage
• when directing brokerage, which on-going duty investment manager must have

request written instruction that restate the manager on going responsibility to seek best execution

• what action investment manager shold do in client directed brokerage
• new prudent investor stated no investment is imprudent?
• how long is the minimum short termtrading banned?
• freq of update report and how to discontinue coverage

60days

• disclosure of firm in ipo deal
• sharing report with subjected company
• record retention min period
• how long is the minimum short termtrading banned?

candidate cannot usecharterholder can use on biz card or letterhead of individual not in company letterhead

• record retention min period
• CFA logo for candidates and charter holder
• present names on report
• duty to report cfa investigation

seeking best execution, minimizing cost and use client brokerage for client benefit

• new prudent investor stated no investment is imprudent?
• when directing brokerage, which on-going duty investment manager must have
• freq of update report and how to discontinue coverage
• what action investment manager shold do in client directed brokerage

must be documented and go through compliance

• interaction with IB
• soft dollars use
• present names on report
• record retention min period

violate if not correct the audience

• fair dealing when discretionary acc has no money
• relationship with client in agency and principal trade
• mispresentation when someone thought the idea was you not the original author
• present names on report

loyalty to employer firstthen integrity of market

• freq of update report and how to discontinue coverage
• eliminate analysis that is not used by the firm generally is ok or not
• breaking company rule and use mosaic info or material nonpublic info to trade violate what
• potential client can be approached once leaving firm or not

no

• duty to report cfa investigation
• present names on report
• potential client can be approached once leaving firm or not
• fair dealing when discretionary acc has no money

cannot disclose which accounts are under managment even when told by a friend of the investor that he knows this investor has account with u

• preservation of confidentiality as investment manager when discuss about acc under managment
• independent and objectivity as speaker at conference
• what action investment manager shold do in client directed brokerage
• disclose confidential info under loyal, prudence and care

if selling current holdings not make sense to generate cash then investment manager can stop buying hot stocks

• sharing report with subjected company
• performance presentation as a team
• fair dealing when discretionary acc has no money
• CFA logo for candidates and charter holder

use the more strict rule. raw data feeds not added value research

• fair dealing when discretionary acc has no money
• soft dollars standard and local rules, which one stronger?
• disclosure of soft dollar standard must address what?
• CFA logo for candidates and charter holder

yes

• present names on report
• independent and objectivity as speaker at conference
• new prudent investor stated no investment is imprudent?
• duty to report cfa investigation

must address whether trades generating brokerage involved transaction conducted on a principal basis

• soft dollars use
• disclosure of soft dollar standard must address what?
• disclosure of firm in ipo deal
• CFA logo for candidates and charter holder

not only officers and their direct reports but also to other investment pro who have employees subject to their control

• record retention min period
• supervisor responsibility apply to whom
• sharing report with subjected company
• performance presentation as a team

7 yrs

• performance presentation as a team
• record retention min period
• interaction with IB
• present names on report

it is ok eg if the firm use top down or macro then technical or quant can be removed if required by the managers

• invite your clients or brokers to attest for your performance is yes or no
• how long is the minimum short termtrading banned?
• potential client can be approached once leaving firm or not
• eliminate analysis that is not used by the firm generally is ok or not

report abt yourslefencourage others / remind others to report, not required to report violation of others

• disclosure of firm in ipo deal
• duty to report cfa investigation
• trade against recommedation
• record retention min period

not allowed

• interaction with IB
• record retention min period
• duty to report cfa investigation
• sharing report with subjected company