📖 Standard II(B) — 市场操纵（Market Manipulation）

Coverage: Standard I(A) Knowledge of the Law / I(B) Independence and Objectivity / I(C) Misrepresentation / I(D) Misconduct

Practice Quiz

Question 1 (I(A) — Knowledge of the Law)

Zhang Wei, a CFA charterholder, works at an asset management firm. He discovers an internal firm policy requiring analysts to obtain written approval from the compliance department before recommending stocks to clients. Zhang Wei considers this policy "overly burdensome" and repeatedly bypasses the approval process by recommending stocks directly to clients.

Question: Does Zhang Wei's behavior violate the CFA Code of Ethics?

A. No violation, because internal firm policies are not laws and have no binding force
B. No violation, because Zhang Wei's recommendations may have reasonable basis
C. Violation, because Standard I(A) requires members to comply with all applicable laws, rules, regulations, and the CFA Institute Code of Ethics — firm compliance policies fall within the scope of "rules"
D. Violation, but limited to internal firm discipline and does not affect CFA charterholder status

Question 2 (I(A) — Application of Knowledge of the Law)

Li Na holds both the CFA charter and a securities license in a certain country. She discovers that one of the country's securities regulations differs from CFA Institute Standard I(B) (Independence and Objectivity) — local law only requires "general disclosure," while the CFA Code requires a more stringent disclosure standard.

Question: How should Li Na act?

A. Follow local law only, because law is the highest standard
B. Follow the CFA Code only, because CFA is globally applicable
C. Follow the more stringent of the two standards (i.e., the CFA Code's stricter disclosure requirements)
D. Report to regulators and request that local law be amended to match the CFA Code

Question 3 (I(A) — Conflicts of Law)

Wang Qiang works in Country X, where local law permits investment advisers to accept gifts of a certain value (up to $200) without disclosure. However, the CFA Code requires disclosure of all gifts that may affect independence. Wang Qiang's client gives him a gift basket worth $150.

Question: According to the CFA Code of Ethics, what should Wang Qiang do?

A. Accept without disclosure, because the behavior is legal in Country X
B. Accept and disclose, because the CFA Code requires disclosure
C. Refuse to accept, because gifts of any value violate the CFA Code
D. Accept without disclosure, and address it only if the client asks

Question 4 (I(B) — Independence and Objectivity)

Chen Ming is a sell-side research analyst covering a technology company. The company invites Chen Ming to visit its headquarters and arranges first-class airfare and five-star hotel accommodation. Chen Ming believes this visit is essential for writing the research report.

Question: According to Standard I(B), which course of action is most appropriate?

A. Accept all arrangements, because it facilitates in-depth research
B. Refuse all arrangements and travel at his own expense
C. Accept reasonable travel arrangements (e.g., standard hotel, economy class) but refuse lavish hospitality, and disclose accepted arrangements in the report
D. Accept all arrangements but disclose them in the research report

Question 5 (I(B) — Independence)

Zhao Fang is a buy-side fund analyst. Her fund holds a significant position in a listed company. The company's CEO privately suggests to Zhao Fang that if she publishes a "positive" research report, the company will pay her a personal consulting fee in the next round of financing.

Question: What is Zhao Fang's best course of action?

A. Refuse the offer and continue to write the report based on her original view
B. Refuse the offer and report the matter to the compliance department and her supervisor
C. Accept the offer but disclose the conflict of interest
D. Treat the offer as a positive signal for the fund and upgrade the rating

Question 6 (I(B) — Buy-Side Pressure)

Analyst Liu Yang is employed by a buy-side institution. His portfolio manager (i.e., his supervisor) asks him to issue a "Buy" rating on a heavily held stock in a research report to support its share price. Liu Yang's own analysis concludes that the stock is "Neutral."

Question: According to Standard I(B), what should Liu Yang do?

A. Write a "Buy" rating as instructed, because the portfolio manager has final decision authority
B. Refuse to change the rating and adhere to his own analytical conclusion
C. Compromise by issuing an "Overweight" rating
D. Resign, because he can no longer work at this firm

Question 7 (I(C) — Misrepresentation / Performance Presentation)

Lin Feng, when presenting his investment track record to a prospective client, shows only the high-return data from the last 3 months (annualized return of 32%), while omitting the underperforming periods from the past 5 years (overall annualized return of only 5%). He states, "Our investment strategy has performed excellently recently."

Question: According to Standard I(C), Lin Feng's behavior:

A. Does not violate the Code, because what he stated is factual (recent performance was indeed excellent)
B. Does not violate the Code, because he used the qualifier "recently"
C. Violates the Code, because selectively presenting performance constitutes misrepresentation that distorts the true picture of overall performance
D. Violates the Code, but only because he did not include a GIPS compliance statement

Question 8 (I(C) — Third-Party Information)

Certified public accountant Sun Yue cites industry data from a consulting firm in an analysis report, but changes the data's statistical scope from "global market" to "Asian market." She believes this change does not affect the conclusion.

Question: According to Standard I(C), Sun Yue's behavior:

A. Does not violate the Code, because the conclusion is unaffected
B. Violates the Code, because unauthorized modification of third-party data constitutes misrepresentation
C. Does not violate the Code as long as a footnote states "data adjusted"
D. Does not violate the Code, because analysts are entitled to make reasonable adjustments to third-party data

Question 9 (I(D) — Misconduct)

CFA charterholder Zhou Hao gets into a heated argument with a colleague during a company offsite gathering, smashes a glass window while intoxicated, and verbally abuses the colleague. The incident results in an internal company reprimand but no legal proceedings.

Question: According to Standard I(D), does this incident affect Zhou Hao's CFA charterholder status?

A. No effect, because this is private conduct unrelated to professional activities
B. No effect, because no legal proceedings were involved
C. May have an effect, because drunken destruction of property and verbal abuse involve "honesty, integrity, and trustworthiness," falling within the scope of Standard I(D)
D. Definitely has an effect — the CFA Institute will automatically revoke his charter

Question 10 (I(D) — Fraudulent Conduct)

Wu Min works as an investment adviser at a securities firm. At a client event, she promises clients a "guaranteed annual return of 15%." In reality, she knows that no investment can guarantee returns.

Question: According to Standard I(D), Wu Min's behavior:

A. Is merely marketing rhetoric and does not constitute a violation
B. Constitutes a violation, but only if clients actually suffer losses
C. Constitutes a violation, because the false promise constitutes fraud and misrepresentation that harms professional integrity
D. Does not constitute a violation as long as there is no written commitment

Answers & Explanations

Question 1 Answer: C

Explanation: Standard I(A) (Knowledge of the Law) requires CFA members and candidates to understand and comply with all applicable laws, rules, regulations, and the CFA Institute Code of Ethics and Standards of Professional Conduct. Firm compliance policies fall within the scope of "rules," and Zhang Wei's bypassing behavior directly violates this standard. Key takeaway: The "law" required by the CFA Code is a broad concept, encompassing laws, regulations, regulatory requirements, and organizational rules. When standards conflict, the stricter one prevails.

Question 2 Answer: C

Explanation: Standard I(A) explicitly states that when different rules conflict, members must follow the stricter standard. Here, the CFA Code requires stricter disclosure, so Li Na should follow the CFA Code. Key takeaway: The CFA Code does not fear "collision" with other rules — when they collide, take the stricter one. This is a recurring exam point.

Question 3 Answer: B

Explanation: Although Country X's law allows accepting gifts under $200 without disclosure, the CFA Code requires disclosure of all gifts that may affect independence and objectivity. Given the difference in standards, Wang Qiang should follow the stricter standard — accept while disclosing. Note: The CFA Code does not prohibit all gifts, nor does it prohibit appropriate business courtesies; the key lies in disclosure and reasonableness. Key takeaway: Gifts do not always need to be refused, but they must be disclosed; choose the stricter of the two.

Question 4 Answer: C

Explanation: Standard I(B) (Independence and Objectivity) requires analysts to maintain independence when accepting arrangements from issuers or companies under research. Moderate, reasonable travel arrangements (e.g., standard hotel, economy class) may be accepted, but lavish hospitality (e.g., first-class airfare, five-star hotel) must be refused, and accepted arrangements should be disclosed in the research report. Key takeaway: Not a blanket refusal, not a blanket acceptance — moderate + disclose.

Question 5 Answer: B

Explanation: The scenario describes a classic case of attempted bribery — offering compensation in exchange for a positive research conclusion. Standard I(B) explicitly prohibits analysts from allowing personal interests to influence independent judgment. The best course of action is not only to refuse but also to report to the compliance department and supervisor — this is the escalation obligation repeatedly emphasized by the CFA Code. Option A refuses but fails to fulfill the reporting obligation; Option C is unacceptable — conflicts of interest cannot be "whitewashed" through disclosure of illegal conduct. Key takeaway: Refuse + Report — both are essential.

Question 6 Answer: B

Explanation: Standard I(B) requires analysts to maintain independence and objectivity, free from external pressure (including pressure from employers, clients, or portfolio managers). Liu Yang should adhere to his own analytical conclusion. Note that Option D "resign" may be a last resort, but the first choice is B — refuse and stand firm. Key takeaway: Buy-side analysts are equally bound by I(B) and must not be swayed by supervisor pressure.

Question 7 Answer: C

Explanation: Standard I(C) (Misrepresentation) prohibits any form of false or misleading statement. Lin Feng's presentation of only the best period while concealing the losing periods distorts the overall performance picture and constitutes misrepresentation. Even though his statement that "recent performance has been excellent" is factual, selective disclosure severely distorts the overall picture. Key takeaway: Selective disclosure = misleading = violation.

Question 8 Answer: B

Explanation: Standard I(C) requires analysts not to improperly modify third-party information. Sun Yue's change of data scope from "global" to "Asian" is a substantive alteration of the information — even if she believes it "does not affect the conclusion," it already constitutes misrepresentation. The correct approach is to maintain the original data scope or make publicly disclosed adjustments with sufficient justification. Key takeaway: Do not alter others' data scope — changing it constitutes misrepresentation.

Question 9 Answer: C

Explanation: Standard I(D) (Misconduct) prohibits any conduct involving dishonesty, fraud, or deceit, or any conduct that reflects adversely on a CFA member's professional reputation, integrity, or competence. Drunken destruction of property and verbal abuse of colleagues — although occurring at a private gathering — reflect issues of personal integrity and self-control and "may" adversely affect professional reputation. This falls within the scope of I(D). Note that Option C uses "may have an effect" — this is common exam language; the CFA Institute has discretionary judgment over misconduct determinations. Key takeaway: I(D) is not limited to "illegal" acts, nor to "working hours" — any conduct involving integrity and reputation is covered.

Question 10 Answer: C

Explanation: Wu Min's "guaranteed return" promise is false — she knows no investment can guarantee returns. This behavior violates Standard I(D), because it involves not only misrepresentation to clients (I(C)) but also fraud and harm to professional integrity. Promising impossible returns is a quintessential example of "misconduct" in the investment industry. Key takeaway: Guaranteeing returns = classic violation, regardless of whether it is oral, written, or whether the client profits or loses.

Key Points Summary

Next Lesson: L016 — Standard I Mock Test Review & Analysis