Ethical And Professional Standards - Ethical And Professional Standards Section 1

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36. Which Standard requires members and candidates responsible for managing a portfolio to a specific mandate, strategy, or style, to make investment recommendations or take investment actions that are consistent with the stated objectives and constraints of the portfolio?

  • Option : A
  • Explanation : Refer to Standard III(C) Suitability.
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38. Which Standard relates to distinguishing between fact and opinion in the presentation of investment analysis and recommendations?

  • Option : C
  • Explanation : Refer to Standard V(B) Communication with Clients and Prospective Clients.
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39. A member gets verbal consent from his employer before accepting a 7-day vacation for him and his family at his client’s private villa in southern Spain, including travel in a private jet as it is in a remote location. This was in appreciation for the outstanding performance of his client’s portfolio. Did the member violate any Standard?

  • Option : C
  • Explanation : The member failed to obtain written consent and a gift such as is this might potentially create a conflict of interest.
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40. Which Standard requires Members and Candidates to disclose to their employer, clients, and prospective clients, as appropriate, any compensation, consideration or benefit received from or paid to others for the recommendation of products or services?

  • Option : A
  • Explanation : Refer to Standard VI(C) Referral Fees.
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