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Answer: A,B
NEW QUESTION: 2
Robert Keith, CFA, has begun a new job at CMT Investments as Head of Compliance. Keith has just completed a review of all of CMT's operations, and has interviewed all the firm's portfolio managers. Many are CFA charterholders, but some are not. Keith intends to use the CFA Institute Code and Standards, as well as the Asset Manager Code of Professional Conduct, as ethical guidelines for CMT to follow.
In the course of Keith's review of the firm's overall practices, he has noted a few situations which potentially need to be addressed.
Situation 1:
CMT Investments' policy regarding acceptance of gifts and entertainment is not entirely clear. There is general confusion within the firm regarding what is and is not acceptable practice regarding gifts, entertainment and additional compensation.
Situation 2:
Keith sees inconsistency regarding fee disclosures to clients. In some cases, information related to fees paid to investment managers for investment services provided are properly disclosed. However, a few of the periodic costs, which will affect investment return, are not disclosed to the clients. Most managers are providing clients with investment returns net of fees, but a few are just providing the gross returns. One of the managers stated "providing gross returns is acceptable, as long as I show the fees such that the client can make their own simple calculation of the returns net of fees." Situation 3:
Keith has noticed a few gaps in CMT's procedure regarding use of soft dollars. There have been cases where "directed brokerage" has resulted in less than prompt execution of trades. He also found a few cases where a manager paid a higher commission than normal, in order to obtain goods or services. Keith is considering adding two statements to CMT's policy and procedures manual specifically addressing the primary issues he noted.
Statement 1:
"Commissions paid, and any corresponding benefits received, are the property of the client. The benefit(s) must directly benefit the client. If a manager's client directs the manager to purchase goods or services that do not provide research services that benefit the client, this violates the duty of loyalty to the client." Statement 2:
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Keith is still evaluating his data, but it appears that there may be situations where proxies were not voted.
After completing his analysis of proxy voting procedures at CMT, Keith wants to insert the proper language into the procedures manual to address proxy voting.
Situation 5:
Keith is putting into place a "disaster recovery- plan," in order to ensure business continuity in the event of a localized disaster, and also to protect against any type of disruption in the financial markets. This plan includes the following provisions:
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* Alternate arrangement for monitoring and analyzing investments in the event that primary systems become unavailable.
* Plans for internal communication and coverage of crucial business functions in the event of disruption at the primary place of business, or a communications breakdown.
Keith is considering adding the following provisions to the disaster recovery plan in order to properly comply with the CFA Institute Asset Manager Code of Professional Conduct:
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Keith is spending an incredible amount of time on detailed procedures and company policies that are in compliance with the CFA Institute Code and Standards, and also in compliance with the CFA Institute Asset Manager Code of Professional Conduct. As part of this process, he has had several meetings with CMT senior management, and is second-guessing the process. One of the senior managers is indicating that it might be a better idea to just formally adopt both the Code and Standards and the Asset Manager Code of Conduct, which would make a detailed policy and procedure manual redundant.
Which of the following statements most accurately describes the obligations of investment managers related to the voting of proxies under the CFA Institute Asset Manager Code of Professional Conduct?
A. Proxies, since they have economic value to the client, must always be voted on, whether on routine or non-routine issues.
B. Managers may exercise discretion, and especially in the case of index funds, they do not have to vote proxies.
C. Proxy issues that are not routine will require more analysis. Also, there may be cases in which all proxies do not have to be voted, if a cost-benefit analysis determines that the client would be better served to let some proxies go.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Proxies do have economic value to the client, which must be safeguarded. Managers must not just vote proxies blindly with management. Non-routine proxy issues do necessitate more review and analysis. The proxy voting policies and process must be disclosed to the client, however, if a cost-benefit analysis shows that there are cases where voting of all proxies may not benefit the client, then all proxies do not have to be voted. (Study Session 2, LOS 6.b)
NEW QUESTION: 3
Which three settings must be configured to enable Credential Phishing Prevention? (Choose three.)
A. define an SSL decryption rulebase
B. enable App-ID
C. validate credential submission detection
D. enable User-ID
E. define URL Filtering Profile
Answer: C,D,E
Explanation:
https://docs.paloaltonetworks.com/pan-os/9-0/pan-os-admin/threat-prevention/prevent-credential-phishing.html
NEW QUESTION: 4
Ferris Plastics, Inc. is a medium sized company, with an enterprise network (access, distribution and core switches) that provides LAN connectivity from user PCs to corporate servers. The distribution switches are configured to use HSRP to provide a high availability solution.
* DSW1 -primary device for VLAN 101 VLAN 102 and VLAN 105
* DSW2 - primary device for VLAN 103 and VLAN 104
* A failure of GigabitEthemet1/0/1 on primary device should cause the primary device to release its status as the primary device, unless GigabitEthernet1/0/1 on backup device has also failed.
Troubleshooting has identified several issues. Currently all interfaces are up. Using the running configurations and show commands, you have been asked to investigate and respond to the following question.
What is the priority value of the VLAN 105 HSRP group on DSW2?
A. 0
B. 1
C. 2
D. 3
Answer: C
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