The Level II pass rate

Marcus Feld, CFA, is a financial adviser at Wrenfield Wealth, where he manages discretionary portfolios for individual clients.

Robert Haines, 45, opened an account with Wrenfield after a ten-minute telephone call with Feld. During the call Feld asked Haines how many holdings he preferred and how often he wanted statements, but nothing about his objectives, risk tolerance, time horizon or other constraints. Feld then invested Haines's $2 million in Wrenfield's Growth 80 model portfolio, which holds 80% equities and 20% bonds.

Dorothy Quint, a retired client, has a written investment policy statement (IPS) that calls for a conservative, income-oriented portfolio. Quint called Feld and asked him to buy $20,000 of shares in a speculative mining company, about 1% of her portfolio. Feld told her the purchase was inconsistent with her IPS and explained the risks. Quint said she understood and still wanted the shares. Feld recorded the conversation in her file and placed the order.

Samuel Ortiz has been a client for five years. Two years ago Ortiz told Feld that he had sold his business and retired, so he would now need regular withdrawals from his portfolio to cover living costs. Feld has not met Ortiz or reviewed or updated his IPS since the account was opened, and Ortiz's portfolio remains invested for long-term growth with no provision for withdrawals.

To attract new clients, Feld prepared a brochure showing the one-, three- and five-year returns of the five accounts he manages that have performed best. The brochure describes these figures as "representative client results." Feld manages 140 accounts, and the five shown beat the median account by more than four percentage points a year.

Marcus Feld, CFA, is a financial adviser at Wrenfield Wealth, where he manages discretionary portfolios for individual clients.

Robert Haines, 45, opened an account with Wrenfield after a ten-minute telephone call with Feld. During the call Feld asked Haines how many holdings he preferred and how often he wanted statements, but nothing about his objectives, risk tolerance, time horizon or other constraints. Feld then invested Haines's $2 million in Wrenfield's Growth 80 model portfolio, which holds 80% equities and 20% bonds.

Dorothy Quint, a retired client, has a written investment policy statement (IPS) that calls for a conservative, income-oriented portfolio. Quint called Feld and asked him to buy $20,000 of shares in a speculative mining company, about 1% of her portfolio. Feld told her the purchase was inconsistent with her IPS and explained the risks. Quint said she understood and still wanted the shares. Feld recorded the conversation in her file and placed the order.

Samuel Ortiz has been a client for five years. Two years ago Ortiz told Feld that he had sold his business and retired, so he would now need regular withdrawals from his portfolio to cover living costs. Feld has not met Ortiz or reviewed or updated his IPS since the account was opened, and Ortiz's portfolio remains invested for long-term growth with no provision for withdrawals.

To attract new clients, Feld prepared a brochure showing the one-, three- and five-year returns of the five accounts he manages that have performed best. The brochure describes these figures as "representative client results." Feld manages 140 accounts, and the five shown beat the median account by more than four percentage points a year.

Marcus Feld, CFA, is a financial adviser at Wrenfield Wealth, where he manages discretionary portfolios for individual clients.

Robert Haines, 45, opened an account with Wrenfield after a ten-minute telephone call with Feld. During the call Feld asked Haines how many holdings he preferred and how often he wanted statements, but nothing about his objectives, risk tolerance, time horizon or other constraints. Feld then invested Haines's $2 million in Wrenfield's Growth 80 model portfolio, which holds 80% equities and 20% bonds.

Dorothy Quint, a retired client, has a written investment policy statement (IPS) that calls for a conservative, income-oriented portfolio. Quint called Feld and asked him to buy $20,000 of shares in a speculative mining company, about 1% of her portfolio. Feld told her the purchase was inconsistent with her IPS and explained the risks. Quint said she understood and still wanted the shares. Feld recorded the conversation in her file and placed the order.

Samuel Ortiz has been a client for five years. Two years ago Ortiz told Feld that he had sold his business and retired, so he would now need regular withdrawals from his portfolio to cover living costs. Feld has not met Ortiz or reviewed or updated his IPS since the account was opened, and Ortiz's portfolio remains invested for long-term growth with no provision for withdrawals.

To attract new clients, Feld prepared a brochure showing the one-, three- and five-year returns of the five accounts he manages that have performed best. The brochure describes these figures as "representative client results." Feld manages 140 accounts, and the five shown beat the median account by more than four percentage points a year.

Marcus Feld, CFA, is a financial adviser at Wrenfield Wealth, where he manages discretionary portfolios for individual clients.

Robert Haines, 45, opened an account with Wrenfield after a ten-minute telephone call with Feld. During the call Feld asked Haines how many holdings he preferred and how often he wanted statements, but nothing about his objectives, risk tolerance, time horizon or other constraints. Feld then invested Haines's $2 million in Wrenfield's Growth 80 model portfolio, which holds 80% equities and 20% bonds.

Dorothy Quint, a retired client, has a written investment policy statement (IPS) that calls for a conservative, income-oriented portfolio. Quint called Feld and asked him to buy $20,000 of shares in a speculative mining company, about 1% of her portfolio. Feld told her the purchase was inconsistent with her IPS and explained the risks. Quint said she understood and still wanted the shares. Feld recorded the conversation in her file and placed the order.

Samuel Ortiz has been a client for five years. Two years ago Ortiz told Feld that he had sold his business and retired, so he would now need regular withdrawals from his portfolio to cover living costs. Feld has not met Ortiz or reviewed or updated his IPS since the account was opened, and Ortiz's portfolio remains invested for long-term growth with no provision for withdrawals.

To attract new clients, Feld prepared a brochure showing the one-, three- and five-year returns of the five accounts he manages that have performed best. The brochure describes these figures as "representative client results." Feld manages 140 accounts, and the five shown beat the median account by more than four percentage points a year.