Code Of Ethics Policy And Procedure! Compliance Training Quiz

15 Questions | Total Attempts: 44

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Compliance Training Quizzes & Trivia

Test your understanding of the code of ethics policy and procedure in this compliance training quiz. There are a set of rules that are expected to be followed in financial institutions so that one can obtain certain types of finances. Using the quiz below, you will get to test your understanding of some of these finances. Try it out and refresh your understanding!


Questions and Answers
  • 1. 
    You want to participate in a secondary offering.  You can't participate if the fund:
    • A. 

      Has ever shorted the stock

    • B. 

      Has shorted the stock anytime in the previous year prior to the pricing date

    • C. 

      Is net short the position at the time of the registration period

    • D. 

      Has shorted the stock 5 days before the pricing date

  • 2. 
    You want to use an Expert Network.  In order to comply with our policy you must:
    • A. 

      Have a member of Compliance or Legal sit in on conversations with the experts

    • B. 

      Maintain records of all calls and meetings with participants in expert networks

    • C. 

      Request compliance policies and procedures followed by the expert network firm

  • 3. 
    You are traveling and need to speak to Jeff or Dave regarding an order.  You may send them a question via text message regarding the order if you then later call him or email him to place the order?
    • A. 

      True

    • B. 

      False

  • 4. 
    Any form of loan by an Employee to a limited partner or vendor or by a limited partner or vendor to an Employee is not allowed unless approved in advance by the Compliance Officer.
    • A. 

      True

    • B. 

      False

  • 5. 
    For which of the following securities do you not need to obtain pre-approval to trade in your personal account?
    • A. 

      Single name equity security

    • B. 

      Options on currencies

    • C. 

      Treasury bond

    • D. 

      Interest in a hedge fund

  • 6. 
    Some of your friends in the investment industry are interested in investing in PAR.  You put together a spreadsheet showing your performance stats to send them all along with PAR's prospective LP presentation.   This is permitted,  as long as you let Compliance or Legal know you're sending out this information and the name of the prosepctive LPs.
    • A. 

      True

    • B. 

      False

  • 7. 
    You indavertently become in possession of material non-public information ("MNPI") regarding a stock that you cover.  You have logged countless hours building models and studying this stock.  You are permitted to continue trading in this name as long as you do not make trade based on the MNPI.
    • A. 

      True

    • B. 

      False

  • 8. 
    Employees are required to report to Legal or Compliance immediately upon coming into possession of MNPI.
    • A. 

      True

    • B. 

      False

  • 9. 
    You are in violation of federal securities laws if you disclose MNPI to another person who is:
    • A. 

      A member of your family

    • B. 

      A person who uses that information for his or her profit

    • C. 

      A member of another hedge fund

    • D. 

      A person who you know covers that stock

  • 10. 
    You receive a gift of a bottle of wine from a broker that has never given you anything in the past.  You must receive consent from Compliance to keep the gift if:
    • A. 

      You suspect the bottle of wine has a value of more than $300

    • B. 

      You are friends with the broker that gave it to you

    • C. 

      You use this broker frequently

    • D. 

      You suspect the bottle of wine costs more than $100

  • 11. 
    A broker calls you to tell you he has three tickets to the Red Sox game that he can't use because his child is sick and offers them to you.  You go to the game and take your  wife and two kids.  You are in compliance with the Code of Ethics.
    • A. 

      True

    • B. 

      False

  • 12. 
    In order for a personal trading account to qualify as an Exempted Account under our Code of Ethics, you must first obtain from the broker that manages the account a letter that describes the nature of the account and confirms your inability  to directly or indirectly influence or control any activity, trading or investing in the account.
    • A. 

      True

    • B. 

      False

  • 13. 
    You are aware that another employee has MNPI and has not yet reported it to Compliance.   The employee never reports having the MPNI to Compliance and because you didn't have MNPI you didn't report it either.  It is later discovered that you in fact knew the other employee had MNPI and did not report it.  You are now potentially subject to immediate dismissal from your job. 
    • A. 

      True

    • B. 

      False

  • 14. 
    In all circumstances, PAR has a duty to seek the lowest execution price for trades on behalf of the fund.
    • A. 

      True

    • B. 

      False

  • 15. 
    Portfolio managers and traders are expressly prohibited from trading any security that does NOT appear on the:
    • A. 

      Restricted List

    • B. 

      Focus List

    • C. 

      Investible Securities List

    • D. 

      PAR's portfolio List