Erwe

Level 1 Mock Exam - Part 1_2008

Click here to go to the online version of the Level I Study Guide. Click here to go to the online version of the latest Candidate Bulletin.

1

Global Investment Performance Standards (GIPS) 2008 Modular Level I, Vol. 1, pp. 127-128 Study Session 1-4-a describe the key characteristics of the GIPS standards and the fundamentals of compliance A key characteristic of the Standards is that the Standards rely on the integrity of input data. The accuracy of input data is critical to the accuracy of the performance presentation. Guidance for Standards I-VII, Standards of Practice Handbook 2008 Modular Level I, Vol. 1, p. 50 Study Session 1-2-a demonstrate a thorough knowledge of the Code of Ethics and Standards of Professional Conduct by applying the Code and Standards to specific situations presenting multiple issues of questionable professional conduct A fiduciary who votes blindly with management on non-routine governance issues may breach their duty to clients by violating the standard that relates to loyalty, prudence, and care. Guidance for Standards I-VII, Standards of Practice Handbook 2008 Modular Level I, Vol. 1, pp. 50-55, 94-95, 98, Example 3 Study Session 1-2-a demonstrate a thorough knowledge of the Code of Ethics and Standards of Professional Conduct by applying the Code and Standards to specific situations presenting multiple issues of questionable professional conduct B is correct because Scott’s method of allocating oversubscribed IPOs discriminates against her uncle, who is a fee-paying client; she violates the Standard related to Fair Dealing. Family accounts that are fee-paying client accounts should be treated like any other firm account. They should neither receive special treatment nor be disadvantaged because of an existing family relationship. Guidance for Standards I-VII, Standards of Practice Handbook 2008 Modular Level I, Vol. 1, pp. 76-79 Study Session 1-2-a demonstrate a thorough knowledge of the Code of...