Which of the following statements about the FASEA Code of Ethics are TRUE: A financial adviser accepts an offer from a fund manager to attend an all- expenses-paid 'conference in Fiji (for both them and their family) because they have placed more than $10 million of new client funds with that fund manager over the last year. The adviser has recommended these managed funds even though there are other managed funds with almost identical features that have much lower fees. The financial adviser tells the clients that the fund manager fees are reasonable given their past performance. The adviser may be in breach of multiple standards, but two standards that they are failing to uphold are Standards 7 and 10. A financial adviser is being investigated by ASIC for providing poor quality advice to clients. They have been working from home and lost a lot of client data when their laptop failed. Unfortunately, they then discovered that the online backups hadn't been backing up the correct folders. They keep missing deadlines for providing client data to ASIC because they are trying to frantically re-create all the files from memory. The adviser may be in breach of multiple standards, but two standards that they are failing to uphold are Standards 8 and 11. A. Neither of the statements are true (both are false) B. Only statement 1 is true C. Only statement 2 is true D. Both statements are true (neither are false)
Which of the following statements about the FASEA Code of Ethics are TRUE: A financial adviser accepts an offer from a fund manager to attend an all- expenses-paid 'conference in Fiji (for both them and their family) because they have placed more than $10 million of new client funds with that fund manager over the last year. The adviser has recommended these managed funds even though there are other managed funds with almost identical features that have much lower fees. The financial adviser tells the clients that the fund manager fees are reasonable given their past performance. The adviser may be in breach of multiple standards, but two standards that they are failing to uphold are Standards 7 and 10. A financial adviser is being investigated by ASIC for providing poor quality advice to clients. They have been working from home and lost a lot of client data when their laptop failed. Unfortunately, they then discovered that the online backups hadn't been backing up the correct folders. They keep missing deadlines for providing client data to ASIC because they are trying to frantically re-create all the files from memory. The adviser may be in breach of multiple standards, but two standards that they are failing to uphold are Standards 8 and 11. A. Neither of the statements are true (both are false) B. Only statement 1 is true C. Only statement 2 is true D. Both statements are true (neither are false)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Aa 39.
Transcribed Image Text:Which of the following statements about the FASEA Code of Ethics are TRUE:
A financial adviser accepts an offer from a fund manager to attend an all-
expenses-paid 'conference in Fiji (for both them and their family) because they
have placed more than $10 million of new client funds with that fund manager over
the last year. The adviser has recommended these managed funds even though
there are other managed funds with almost identical features that have much lower
fees. The financial adviser tells the clients that the fund manager fees are
reasonable given their past performance. The adviser may be in breach of multiple
standards, but two standards that they are failing to uphold are Standards 7 and 10.
A financial adviser is being investigated by ASIC for providing poor quality advice to
clients. They have been working from home and lost a lot of client data when their
laptop failed. Unfortunately, they then discovered that the online backups hadn't
been backing up the correct folders. They keep missing deadlines for providing
client data to ASIC because they are trying to frantically re-create all the files from
memory. The adviser may be in breach of multiple standards, but two standards that
they are failing to uphold are Standards 8 and 11.
A. Neither of the statements are true (both are false)
B. Only statement 1 is true
C. Only statement 2 is true
D. Both statements are true (neither are false)
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