Standard III(A)

Question 1

what is standard III(A)?

Answer 1

duties to clients - loyalty, prudence and care

Question 2

explain standard III(A)?

Answer 2

Members and Candidates have a duty of loyalty to their clients and must act with reasonable care and exercise prudent judgment.

Members and Candidates must act for the benefit of their clients and place their clients’ interests before their employer’s or their own interests.

Question 3

application of loyalty, prudence and care

Answer 3

work in client’s best interest no matter what

agreements should transparently outline advisory limitaitions

Question 4

duty fulfilled in developing client portfolio when:

Answer 4

considers:
investment’s place in overall portfolio

risk of loss and opportunity of gains

tax implications

diversification, liquidity, CF and overall return requirementss

Question 5

soft dollars/commissions

Answer 5

uses client brokerage to purchase research srevices

Question 6

direct brokerage

Answer 6

client directs manager to use brokerage for g/sbest e

Question 7

best execution/price

Answer 7

maximize value of portfolio within client’s stated investment objectives and constraints