Module 14 - Ethics in Professional Asset Management Industry

Question 1

A _______ is any untrue statement or omission of a fact or any statement that is otherwise false or misleading.

a) Plagiarism
b) Omissions
c) Misrepresentation
d) All of the above

Answer 1

c) Misrepresentation

Question 2

This is a type of information that is not yet available to the public:

a) Material Information
b) Information Based Manipulation
c) Public Information
d) Nonpublic Information

Answer 2

d) Nonpublic Information

Question 3

This refers to transactions that deceive / mislead market participants:

a) Transaction Based Manipulation
b) Market Manipulation
c) Information Based Manipulation
d) Nonpublic Information

Answer 3

a) Transaction Based Manipulation

Question 4

This defines as a set of moral principles or rules of conduct that provide guidance for behavior when it affects others:

a) Diligence
b) Prudence
c) Ethics
d) Ethical Conduct

Answer 4

c) Ethics

Question 5

All of the following are key factors of Material Information except:

a) Mergers, Acquisition, Joint Ventures
b) Changes in Management
c) Government reports of economic trends
d) All of the above

Answer 5

d) All of the above

Question 6

This refers to an opinion expressed in regard to purchasing, selling or holding a given security or other investment:

a) Investment Actions
b) Performance Presentation
c) Fair Dealing
d) Investment Recommendations

Answer 6

d) Investment Recommendations

Question 7

Which of the following statement/s is or are true as to why Ethics matter in the Investment Industry: I. A strong ethical culture that helps honest, ethical people engage in ethical behavior will foster the trust of investors, lead to robust global capital markets and ultimately benefit society. II. Ethics for a global investment industry should not be universal and ultimately support trust and integrity above acceptable local or regional customs and culture. III. Investment professionals should consider how their investment decision-making processes affect the global financial markets in the broader context of how they apply their ethical and professional obligations.

a) III only
b) I only
c) I, II and III
d) I and III

Answer 7

d) I and III

Question 8

Which of the following Standards of Professional Conduct topics that talks about “Communication with Clients & Prospective Clients”?

a) Duties to Clients
b) Conflicts of Interest
c) Investment Analysis, Recommendations and Actions
d) Integrity of Capital Markets

Answer 8

c) Investment Analysis, Recommendations and Actions

Question 9

Which of the following statement/s is or are part of the Code of Ethics: I. Place integrity of the investment profession and the interests of clients above their own personal interests. II. Use reasonable care and exercise independent professional judgement when conducting investment analysis, making investment recommendations, taking investment actions and engaging in other professional activities. III. Act with Integrity, competence, diligence, respect and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession and other participants in the global/local capital markets.

a) II and III
b) I, II and III
c) I only
d) None of the above

Answer 9

b) I, II and III

Question 10

The following concept is or are part in formulating a Client Suitability Assessment except: I. Performance measurement benchmarks II. Evaluating client needs and suitability III. Client identification IV. End Result

a) II only
b) I only
c) II, III and IV
d) III only

Answer 10

a) II only