道德

问题如下：

Given O’Connor’s first statement about the asset allocation, expected returns, and strategy of the Step Up Social Impact Private Equity Fund, does O’Connor most likely violate the CFA Institute Standards?

选项：

A.No B.Yes, with regard to Standard III(A): Loyalty, Prudence, and Care C.Yes, with regard to Standard V(B): Communication with Clients and Prospective Clients

解释：

Solution

1. Correct because there is no indication O’Connor violated Standard III(A): Loyalty, Prudence, and Care or Standard V(B): Communication with Clients and Prospective Clients. With regard to Standard III(A), investors in this type of social impact fund are likely looking to achieve high levels of social impact as well as to obtain somewhat competitive investment returns. Consequently, returns may not be the primary focus so the Fund can still meet its fiduciary duty to clients. As long as this strategy is clearly indicated in the prospectus prior to entry into the Fund, O’Connor would not be in violation of Standard III(A). In addition, with regard to Standard V(B), since the investment strategy is clearly stated in detail in the prospectus and notifications of changes are sent to clients prior to changes being made, O’Connor, as part of the senior management team, would not be in violation of Standard V(B).

2. Incorrect because there is no indication O’Connor violated Standard III(A): Loyalty, Prudence, and Care.

3. Incorrect because there is no indication the information contained in the prospectus is incorrect or misleading. Therefore, O’Connor, as part of the senior management team, is not in violation of Standard V(B): Communication with Clients and Prospective Clients.

Guidance for Standards I–VII

• demonstrate a thorough knowledge of the CFA Institute Code of Ethics and Standards of Professional Conduct by applying the Code and Standards to specific situations