Walls of China, Conflicts of Interest, and Insider Trading. Basic Principles of Chinese Traditional Architecture
To the question Great Wall of China asked by the author Advise the best answer is The Great Wall of China was and will be a symbol of China. At the entrance to the restored part of it there is an inscription made by Mao Zedong: "If you have not visited the Great Wall of China, you are not a real Chinese." The wall is one of the largest and most sophisticated building and technical structures in the world. It stretches from the Liaodong Bay, northeast of Beijing through Northern China to the Gobi Desert. The data on its length is different and varies. The distance from one end to the other is 2,450 km, but if we take into account the other ramparts extending from it, then we get 6,000 - 6,500 km. Scientists now want to make a topographic survey to determine the exact length of the wall.
The width of the top of the Wall made it expensive for military units. At the same time, 5 infantrymen or cavalrymen could go in a row. Indeed, it served only to patrol the border and to completely block mountain paths that could not be blocked in other ways. In the era of edged weapons, the Great Wall of China reliably protected trade routes, protected peasants from the raids of nomads. Only betrayal was able to cross the Wall several times.
Its construction began in the 7th century. BC e. rulers of small states (they built fortifications around their territories in the form of earthen ramparts). Throughout the history of the country, there were 3 Great Walls of China, the construction of which took more than 2000 years.
The first Wall was built during the reign of Emperor Qin Shih Huang, known as the unifier of the Chinese land. Its construction employed 500,000 people, including many Confucian scholars. The emperor sought to destroy this teaching, so all followers were shackled and sent to the construction site, ensuring the timely completion of the work. In fact, the Great Wall of China is built on the bones of people driven from all over the country. Among the people, it has become a “wailing wall”. Even one old story tells about a wife who, upon learning about the death of her husband, destroyed the wall with a stream of tears. The Great Wall of China was conceived as a fortification against the raids of nomads - the Mongols and as a proof of the power and greatness of the emperor.
The emperor entrusted the work to the most successful general - Meng Tian. The wall went through deserts and swamps, over mountains. Troops were stationed along its entire length, and the military significance was enormous. From the watchtowers it was possible to spread information from one end to the other in a day! For the country of those times, it was a tremendous speed. Even the organization of work was an achievement for China at that time. One of the legends tells that it was predicted to Emperor Qin Shi-Huang that the wall would be completed when “Wang” (10,000) people were buried in it. When the emperor found a man named Wang, he ordered to kill him and bury him in the wall. The same fate befell all those who died during the construction. That is why the Great Wall of China used to be called the Longest Cemetery in the world or the Wall of Tears.
The second wall was built in the period 206 BC. e. - 220 AD e. Emperor and the Han Dynasty to protect against the Huns, who made regular raids on China and destroyed the Wall. At this time, the earthen ramparts were reinforced with stone.
For the construction of the third wall, the Ming dynasty allocated about 1 million people. In some areas, several walls were built (up to 10), some areas were completely dismantled, a foundation was erected, and then a section of the wall. Each of the towers of the Great Wall of China was supposed to be in line of sight from two neighboring ones. Messages were transmitted using smoke, drumming or fire (in the dark). Along the entire length from the Wall to the city, strong points were located at the distance of one horse crossing, where messengers with news of rest and changed horses.
Answer from Neurosis[active]
The Great Wall of China (WKS) separated Slavic China from China. It was built and was completed, for protection from China, after the war between China and China, 7526 years ago in 2017. The descents from the wall were towards China. Videoconferencing can be seen from Space. The length of the Aerospace Forces (and also destroyed) is up to 30 thousand kilometers, the height is up to 10 meters, and the width is up to 6 meters.
Answer from X[guru]
The construction of the first wall began in the 3rd century BC. e. during the reign of Emperor Qin Shi-Huangdi (Qin dynasty), during the Warring States period (475-221 BC) to protect the state from the raids of the nomadic Xiongnu people. The construction was attended by a fifth of the then population of the country, that is, about a million people.
The wall was supposed to serve as the extreme northern line of the possible expansion of the Chinese themselves; it was supposed to protect the subjects of the "Middle Empire" from the transition to a semi-nomadic lifestyle, from merging with the barbarians. The wall was supposed to clearly fix the boundaries of Chinese civilization, contribute to the consolidation of a single empire, just made up of a number of conquered kingdoms.
During the Han Dynasty (206 BC - 220 AD), the Wall was extended westward to Dunhuang. A line of watchtowers was also built, extending deep into the desert, to protect trade caravans from nomadic raids. Those sections of the Great Wall that have survived to our time were built mainly during the Ming dynasty (1368-1644). In this era, the main building materials were bricks and stone blocks, which made the structure more reliable. During the Ming reign, the Wall stretched from east to west from the Shanhaiguan outpost on the shores of the Bohai Bay of the Yellow Sea to the Yumenguan outpost at the junction of the modern provinces of Gansu and Xinjiang Uygur Autonomous Region.
The Manchu Qing Dynasty (1644-1911), having overcome the Wall with the help of the betrayal of Wu Sangui, reacted to the Wall with disdain. During the three centuries of Qing reign, the Great Wall almost collapsed under the influence of time. Only a small section of it near Beijing - Badaling - was maintained in order - it served as a kind of "gateway to the capital." In 1899, American newspapers spread a rumor that the wall would be completely demolished, and a highway would be built in its place.
In 1984, Deng Xiaoping initiated a program to restore the Great Wall of China, financed by Chinese and foreign companies, as well as individuals.
A 60-kilometer stretch of the wall in the Mingin region of the Shanxi region in the northwest of the country is reportedly being actively eroded. The reason is intensive management methods agriculture in China, starting in the 1950s, which led to the drying up of groundwater, and as a result, this region became the main source and center of the origin of powerful sandstorms. More than 40 km of the wall has already disappeared, and only 10 km are still in place, but the height of the wall in some places has decreased from five to two meters.
(Shapovalov A.G.) ("Legal world", 2006, N 8)
CHINESE WALLS, CONFLICT OF INTEREST AND INSIDER TRADE
A. G. SHAPOVALOV
Shapovalov A.G., chief Specialist Judicial Department of OJSC TNK-BP Management.
In most foreign jurisdictions, the prohibition of insider activity also applies to both individuals and legal entities... In accordance with sub. (2) Art. 10b5-1 of the US Law on valuable papersah and exchanges<1> the subject of responsibility can be not only a natural person, but also a legal entity (a person other than a natural person). In relation to the latter, the ban is also expressed in the form of special norms - the Chinese walls. ———————————<1> The US Securities and Exchange Act of 1934.
Thus, the New Zealand Law on Amendments to the Securities Act of 1988<2> included the so-called Chinese walls - a set of preventive norms on the non-proliferation of insider information. China Walls regulations apply in situations where one department or division of a legal entity (or other) has access to non-public commercially valuable information about the issuer's securities, while other departments (divisions) of this entity are authorized to conduct transactions with securities , do not have access to this information due to the application of the norms - the Chinese walls. ———————————<2> The New Zealand Securities Amendment Act of 1998.
Unlike most countries in the UK<3> and South Africa<4> the prohibition of insider activity applies only to individuals. These persons are responsible in cases when they act on their own behalf, on behalf of another person, including legal and other. This ensures the inevitability of holding accountable persons making transactions through the use of corporate or state structures. ——————————— <3> The United Kingdom Financial Services and Markets Act of 2000.<4> The South African Insider Trading Act of 1998.
The main argument in favor of limiting the ban exclusively to individuals is the absence of the need to use the norms - the Chinese walls. In many jurisdictions, the application of the norms of the walls of China causes considerable difficulties.<5>. ——————————— <5> Final Report by the King Task Group into Insider Trading Legislation (October 1997), para 3.12.
As the main argument for the imposition of responsibility for violation of the prohibition of insider activities not only on individuals, but also on other persons, is that when limiting the circle of persons, responsible only by individuals, any incentive for legal entities and public entities to control internal information flows is undermined. There is a certain understanding of the issues of establishing Chinese walls in Russian theory and practice.<1>... The problem of applying liability for insider activity to legal entities is caused, firstly, by the presence of personal interests of employees of legal entities who have access to such information (in fact, insider activity - the presence of Chinese walls is not required), and, secondly, a conflict of interests between a legal entity as an intermediary and another (individual) person as a participant in a transaction with securities and their derivatives (conflict of interest - can be overcome by introducing Chinese walls). ———————————<1> In passing, we note that in the Russian scientific literature there is a point of view that both individuals and legal entities can act as subjects of the right to trade secrets. We consider it appropriate to make such a remark, since, firstly, in our opinion, a commercial secret is an integral part of insider information, and secondly, the right to such a secret includes not only rights, but also duties and responsibilities. For more details see: L. A. Atsapina. Commercial secret as an object of civil rights. Dis. ... Cand. jurid. sciences. Ryazan, 2005.S. 188.
In the work of E.A.Khomenko, dedicated to the issue of universalization of banks, i.e., the possibility of combining credit institutions settlement, credit and investment operations, the following two points of view of the author are of interest for the purposes of this work: 1. “Of the more than 30 most developed country securities markets, about 40 - 45% are markets with a“ Chinese wall ”... This is, in our opinion , indicates that not all countries of the world welcome the process of universalization of banks "<2>. ——————————— <2> Khomenko E.A. Legal problems of implementation by credit institutions professional activity on the securities market. Dis. ... Cand. jurid. Sciences: 12.00.03 / Khomenko E.A.M., 2004.S. 50.
Thus, the author correctly notes that the Chinese walls are being erected in order to prevent conflicts of interest. The second conclusion of the author is of greater interest due to its controversial nature. 2. “Employees of Russian banks have practically unlimited access to information about transactions made by clients and the status of their accounts, while our legislation does not contain any restrictions on the right of bank employees to perform transactions on the securities market. All of the above allows us to conclude that it is necessary to resolve the issue of the right of credit institutions to carry out professional activities in the securities market by limiting it "<3>. ——————————— <3> In the same place. P. 52.
Thus, the author, pointing to the fact that employees of a legal entity (bank) use insider information (insider activity), believes that this is an argument for the establishment of Chinese walls. However, in the first point of view, E. A. Khomenko connects the Chinese walls with a conflict of interest. Consequently, the author believes that insider activity and conflict of interest are identical concepts that characterize the same phenomenon. This position, according to which the concepts of conflict of interest and insider activity are mixed, finds support among other researchers, including members of the Committee of the State Duma of the Russian Federation on credit institutions and financial markets.<4>. ——————————— <4> See, for example: “It makes no sense to prohibit if there is no punishment” (materials of the working meeting of the Committee of the State Duma of the Russian Federation on credit organizations and financial markets “Elements of pension reform: preventing price manipulation and the use of insider information on the securities market”) // Stocks and bods market. 2003. N 14.
In this regard, it seems necessary to consider whether the concepts of insider activity and conflict of interest are identical. Insider activity is understood as the execution of transactions using insider information, as well as the transfer of such information to third parties in order to make the latter transactions with securities and their derivatives. In his work, E. A. Khomenko gives the following definition of a conflict of interest, pointing to examples of its implementation and the legal basis for its prohibition: “A conflict of interest is understood as a contradiction between the property and / or other interests of participants in the securities market, including a professional participant the market, as well as its employees, and the interests of the counterparty of the participant in the securities market, that is, his client. A conflict of interest when a credit institution conducts operations on the securities market may arise between a credit institution, its employees, customers and other persons. In other words, when servicing a client, a bank has a choice of a solution to a particular issue, one option is more preferable, based on the interests of the bank, and the other - from the interests of the client "<1>. ——————————— <1> Rubtsov B. B. World securities markets. M., 2002.S. 142.Cit. Quoted from: Khomenko E. A. Legal problems of professional activity in the securities market by credit institutions. Dis. ... Cand. jurid. Sciences: 12.00.03 / Khomenko E.A.M., 2004.S. 44 - 45.
For example, a bank can put pressure on its client in order to force the latter to acquire or not to acquire certain securities, using a dependent position when deciding whether to lend to his bank account. The bank can advise its client on the purchase or sale of securities, proceeding not from the interests of the client, but from its own or even the interests of third parties. In addition, the bank employees have information about the status of their clients' accounts, about the transactions performed on these accounts, the volume of transactions, etc. This information can be used when making transactions with securities in order to obtain personal gain. When resolving a conflict of interest, a credit institution must observe the priority of the client's interests over their own. On this account, there is a direct instruction from the Central Bank of the Russian Federation, enshrined in the instruction of July 7, 1999 N 603-U "On the procedure for exercising internal control over the compliance of activities in financial markets with the legislation on financial markets in credit institutions"<2>; <3>. ——————————— <2> Bank of Russia Bulletin. 1999. N 41.S. 45.<3> Khomenko E.A. Decree. op. S. 44 - 45
In addition, in accordance with the Regulation of the Federal Commission for the Securities Market of Russia dated January 20, 1998 "On the Specifics and Restrictions of Combining Broker, Dealer Activities and Activities for the Trust Management of Securities with Operations for Centralized Clearing, Depository and Settlement Services", approved by the Resolution of the Federal Commission for the Securities Market of the Russian Federation of 20 January 1998 N 3 and the Regulation of the Central Bank of the Russian Federation of January 22, 1998 N 16-P, professional participants in the securities market, performing the functions of settlement depositories, clearing centers for securities transactions, must stop carrying out brokerage, dealer activities, as well as activities on trust management of securities before June 1, 1998<4> ——————————— <4> Bulletin of the Federal Commission for the Securities Market of Russia. 1998. No. 1.
In the Concept for the development of corporate legislation for the period up to 2008, approved by the Ministry economic development and trade of the Russian Federation, it is indicated, in particular, the following: “One of the most obvious gaps in the field of corporate law is the regulation of relations between a legal entity and the subjects that make up its bodies. The consequence of legal gaps is the impossibility of resolving conflicts arising between the bodies of a legal entity. The regulation of conflicts of interest is one of the most important tasks of law. It applies when one person can have two conflicting interests at the same time. A fundamentally important issue is ensuring the civil liability of directors and managers for losses caused by them to the company. A conflict of interest occurs when one person can have two conflicting interests at the same time, and the pursuit of one interest may harm the other (protected) interest. In many cases, such a conflict arises between personal and professional interests. The task of law in relation to this phenomenon is to either exclude cases of pursuit of two opposing interests at the same time, or to ensure the independence of a person from interests that are not subject to legal protection... A member of the board of directors, if there is a conflict of interest, must disclose information about an existing interest, must indicate what kind of interest it is, and express it in quantitative terms. The notice of interest must indicate specific information about the nature and degree of the director's interest. A general rule should be established that a member of the board of directors may not vote at any meeting of the board of directors on any resolution concerning an issue in which the director, or the person with whom the director is associated, has a material interest or obligation that conflicts with or may give rise to conflict with the interests of the company "<1>. ——————————— <1> Clauses 21, 22, 66, 73 - 75 of the Concept. The full text is available on the official website of the Ministry of Economic Development and Trade of Russia at http: // www. economy. gov. ru /.
In accordance with the Regulation of the Bank of Russia dated December 16, 2003 N 242-P "On the organization of internal control in credit institutions and banking groups"<2> one of the goals of internal control is to ensure effective management of banking risks. Clause 3.4.2 of this Regulation determines that the credit institution should provide distribution job responsibilities employees in such a way as to exclude a conflict of interest (a contradiction between the property and other interests of a credit institution and (or) its employees and (or) customers, which may entail unfavorable consequences for the credit institution and (or) its customers) and the conditions for its occurrence , commission of crimes and implementation of other illegal actions in the course of banking operations and other transactions. ———————————<2> Bank of Russia Bulletin. 2004. N 7.
According to the letter of the Bank of Russia dated May 24, 2005 N 76-T "On the organization of operational risk management in credit institutions"<3> operational risk - the risk of losses as a result of inconsistency with the nature and scale of the credit institution's activities and (or) the requirements of the current legislation of internal procedures and procedures for conducting banking operations and other transactions, their violation by employees of the credit institution and (or) other persons (due to unintentional or deliberate actions or inaction), disproportion (insufficiency) functionality (characteristics) of information, technological and other systems used by the credit institution and (or) their failures (malfunctions), as well as as a result of external events. ———————————<3> Bank of Russia Bulletin. 2005. N 28.
These acts of the Bank of Russia indicate the following: violation of the requirements of the current legislation in terms of conducting banking operations and other transactions creates a credit risk only when certain adverse consequences for the bank or its customers occur - causing losses. The term "conflict of interest" itself indicates that in the presence of a situation where there are two or more interests of two or more persons in a legal relationship that binds them, one interest mutually excludes the other so that the satisfaction of the material (or closely related) needs of one participant in the legal relationship will not allow another participant (other participants) of the legal relationship to satisfy the same material needs or significantly reduce the degree of their satisfaction. Thus, the other participant in the legal relationship incurs losses (real damage or lost profits). It must also be borne in mind that in accordance with analytical report Bank for International Settlements in 1998, in which quantitative studies of banks' activities in the securities market were analyzed, among the main conclusions was the following: a conflict of interest cannot serve as a serious obstacle to prohibiting banks from performing transactions with securities<1>. ——————————— <1> Mirkin Ya. M. Russian securities market: the impact of fundamental factors, forecast and development policy. M., 2002.S. 240.Cit. Quoted from: Khomenko E. A. Legal problems of professional activity in the securities market by credit institutions. Dis. ... Cand. jurid. Sciences: 12.00.03 / Khomenko E.A.M., 2004.S. 22.
Insider activity does not imply any losses for the other participant, it does not deprive a person who has access to insider information on a legal basis of the right to satisfy his material interests. In this case, we are not talking about the lost income, which the person was counting on, as a result of speculative exchange transactions. Speculative transactions that do not have an investment purpose are not subject to judicial protection, since such transactions have a gambling nature (Article 1062 of the Civil Code of the Russian Federation), in terms of the possibility of recovering lost profits<2>... By offering at the auction the price for the purchase or sale of his securities, the owner acts completely voluntarily and without any coercion both on the issue of the transaction and on the issue of determining its essential conditions, including the price. This is fully consistent with the principle of freedom of contract in civil law relations (Art. 1, 421 of the Civil Code of the Russian Federation). Thus, E. A. Khomenko, claiming that the bank in any way coerces the client to perform a particular operation (transaction), thereby speaks exclusively of a conflict of interest, but not in any way about insider activity. An insider buys (sells) securities at the price offered by their owner (buyer, respectively, when selling). Civil law does not contain the obligation of the counterparty to the transaction to disclose, when it is made, information about a possible change in the value of the subject of the transaction in the future. Therefore, from a legal point of view, the insider cannot bear any responsibility for decisions taken by a freely acting counterparty. From an ethical point of view, even the Bible does not consider justified claims of the counterparty about lost profits in the case when the counterparty himself agreed to make a deal on the terms of the contract proposed by him.<3>. ——————————— <2> For more details see: Determination of the Constitutional Court of the Russian Federation of December 16, 2002 N 282-O, Resolution of the FAS of the Moscow District on August 10, 2005 in case N KG-A40 / 7048-05.<3> For more details, see the Bible. New Testament. Gospel of Matthew. Chapter 20, art. 1 - 15 (Synodal translation).
Thus, due to the fact that insider activity, unlike a conflict of interest, cannot entail adverse consequences for the counterparty and other persons, it should be concluded that insider activity and conflict of interest characterize different legal phenomena.
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The height of residential buildings of ordinary citizens could not exceed one floor. For these reasons, a kind of volumetric-spatial composition of the Chinese city arose, very contributing to the picturesque landscape. This picturesqueness was multiplied by the color scheme of the roofs of buildings. The roofs of the imperial buildings were painted in a golden yellow color, for city temples and for officials' houses - in green, sometimes blue is found (the Temple of Heaven in Beijing), and the roofs of the towers are covered with gray tiles, sometimes with green edges.
Artistic identity chinese architecture is formulated for Westerners thanks to the curved silhouettes of the high Chinese rooftops. In China, demons and evil spirits were believed to avoid curved lines as they could only move in a straight line. On clay models from the Han era, it can be seen that even then the roofs began to bend up a little. In general, both the massiveness and curvature of Chinese roofs are associated not so much with the decorative moment as with design features Chinese architecture. For roofs, rafters were never made, but a post-and-beam system was used, so the roof was very high and massive. With this design, only a curved shape could reduce the weight of the roof by almost a third and give the entire structure a light and graceful silhouette.
The cornice, which was strongly extended above the surface of the wall, curving upward, allowed light to freely penetrate into the house. In addition, rainwater flowed from the roof at a sufficient distance from the structure itself; despite the fact that the overwhelming majority of buildings were erected from wood, such a seemingly insignificant detail as the shape of the cornice played its role in the fact that the wooden temples, having stood for up to 800 years, have been perfectly preserved. Of course, the exceptional quality of the roofing material also contributed to this longevity.
Ceramic tiles of a cylindrical shape were laid on the roof surface, fastened at the joints using a special profile and figurines of magical animals called qiang shou, which were fastened 13 lengths from the edge of the roof, 5, 7, 9 or more figures, the largest number was placed on the roofs the imperial chambers. Qiang Shou, in addition to their utilitarian purpose, also played the role of defenders of the house from evil spirits. A similar design served as the ridge end, but instead of the qiang shou, jen-wen ceramic "clamps" were used - those figurines that give Chinese buildings a "horned" appearance. The heavy and extended cornice was supported by a system of special dow-gun brackets, which made it possible to distribute the mass of the roof in such a way that the building acquired additional stability. Dou gong were richly ornamented, serving also the purposes of decoration.
It was customary to decorate architectural structures in every possible way; for this, wood and stone carvings, ceramics, and ornamental coloring were used. In front of the palaces, sculptural images of the defenders of the house - a lion and a tailed turtle - were placed; they were made of stone, marble and bronze.
The building as a whole was built according to the same principles as the roof - using a post-and-beam system, and this system, which is typical for wood construction, was also used in the construction of brick buildings. In this case, a frame was built, the same as for a wooden structure, and bricked over it.
The main building material in China there was wood, ceramics were used for the roofs and cladding of some buildings, sometimes stone and brick were used for construction, metal structures were rarely erected. When erecting metal buildings, mainly pagodas, a special castle system was used, which provided the building with the necessary strength and style.
There are some regional differences in the nature of Chinese architecture. With a general canon in the north, everything is somewhat stricter, clearer, more monumental, foreign influences are much more noticeable. In the south, there is neither austerity in the layout, nor bronze lions, but the roofs are bent more abruptly, the decor is richer, all the architectural details, and the buildings themselves are more elegant and lighter.
Question Code: 3.2.121 Provide Correct Accounting Statements money and securities transferred into trust:
I. For keeping funds in trust, the manager is obliged to use a separate bank account;
II. To record the rights to securities held in trust, the manager opens a separate personal account of the manager in the system of maintaining the register of owners of securities, and if the rights to securities are recorded in the depository, he opens a separate depo account of the manager; III. On one bank account of the manager, funds transferred to trust management by different founders of the management can be recorded;
IV. The manager has the right to keep aggregate internal accounting of funds transferred to trust management by different founders of the management;
V. On one personal account of the manager (depo account of the manager) securities transferred into trust management by different founders of the management may be recorded;
Vi. The manager has the right to keep aggregate internal accounting of securities transferred to trust management by different founders of the management.
A. All except V and VI B. Only III and V
C. All except IV and VI
D. That's right
Question Code: 3.2.122 Provide the correct statements regarding the transfer of trust objects when
termination of the trust management agreement:
I. When returning funds and / or securities in trust, the manager has the right to withhold from the funds returned the expenses incurred by him, as well as those that must be incurred by him in connection with the exercise of trust;
II. The manager is obliged to transfer to the founder of the management the securities and / or funds received by the manager after the termination of the trust management agreement in connection with the management of securities in the interests of this person during the period of the specified trust management agreement, within 30 working days from the date of receipt of the relevant securities and / or cash;
III. If the trust management agreement does not provide for other procedures and / or terms, the manager is obliged to transfer to the founder of the management the objects of trust management that are under management at the time the manager receives a notice of cancellation of the agreement, within a period not exceeding 14 days from the date of receipt of the cancellation;
IV. The manager is obliged to transfer to the founder of the management the securities and / or monetary funds received by the manager after the termination of the trust management agreement in connection with the management of securities in the interests of the founder of the management during the period of the agreement within 10 working days from the date of receipt of the relevant securities and / or monetary funds;
V. When returning funds and / or securities in trust, the manager has the right to withhold from the funds returned only the expenses incurred by him in connection with the implementation of trust.
A. II, III and V
B. I, II and III
C. III, IV and V
D. I, III and IV
Issue code: 3.1.123 In addition to the essential terms of the trust management agreement, in accordance with the regulatory
A. The procedure for returning the management objects belonging to him to the founder of management upon termination of the trust management agreement
B. The composition of the objects of trust management that the manager has the right to acquire when carrying out activities for the management of securities, as well as at the request of the founder of the management of restrictions on the acquisition certain types objects of trust
C. The list of legal entities, whose securities in documentary form, which are not issued, may be acquired by the manager
D. Types of transactions that the manager has the right to conclude with the trust management objects belonging to the founder of the management, which are in trust, as well as, at the request of the founder of the management, restrictions on the performance of certain types of transactions
Issue code: 3.1.124 In addition to the essential terms of the trust agreement, in accordance with the regulatory
by acts of the federal executive body for the securities market, the parties must agree in writing on the following conditions (indicate the WRONG statement):
A. Possibility of conclusion of exchange futures contracts by the manager at the auction of the trade organizer
B. The procedure for resolving disputes between the founder of the management and the manager related to the execution of transactions by the manager in excess of his powers
C. The possibility for the manager to conclude OTC fixed-term contracts outside the auction of the trade organizer
D. The structure of the objects of trust, which the manager is obliged to maintain during the entire term of the agreement
Question code: 3.1.125 The manager is not entitled (exclude unnecessary): Answers:
A. To alienate the principal's property as part of the property in trust for the execution of the commission agreement, if the securities manager is at the same time the commission agent under the specified agreement
B. Conclude transactions with the property of the founder of the management in violation of the terms of the trust agreement
C. Conduct transactions with securities, the issuer of which is the founder of the management
D. To alienate his own property as part of the property in trust, except for cases provided for by law Russian Federation and a trust agreement
Question Code: 3.1.126 Indicate the FALSE statement regarding restrictions on the activities of the trustee: Answers:
A. The manager does not have the right to alienate into the composition of the property that is in his trust management, into the property of the principal, in the execution of the contract of order, if the manager is at the same time an attorney under the specified contract
B. The manager does not have the right to alienate the property of the founder of the management free of charge, with the exception of remuneration and expenses.
C. The manager is not entitled to use the property of the founder of the management for the fulfillment of obligations from the trust agreements concluded with other founders of the management
D. The manager is not entitled to conclude, at the expense of monetary funds and (or) securities held in trust, transactions for the purchase / sale of securities with an affiliated person of the manager, including transactions for the purchase / sale of securities that meet the liquidity criteria established by the federal executive body on the securities market, concluded through trade organizers on the basis of unaddressed and anonymous orders
Question code: 3.2.130 Indicate the actions of the professional participant that are most consistent with the implementation of the principle of good faith:
I. Conscientious fulfillment of obligations under contracts for the sale and purchase of securities and other contracts directly related to the implementation of professional activities in the securities market; II. Execution of client orders in the order they are received, acting solely in the interests of clients, and ensuring the best conditions for the execution of client orders in accordance with the terms of the orders;
III. Conscientious fulfillment of obligations under contracts concluded with clients, acting exclusively in the interests of clients;
IV. Bringing to the attention of clients all the necessary information related to the execution of client orders and the fulfillment of obligations under the securities purchase and sale agreement, including the adoption of measures to help the client understand the extent and nature of the risks associated with the transaction being performed.
A. Only I and II
B. Only III and IV
C. All but IV
D. All of the above
Question code: 3.1.131 Which of the following can cause a conflict of interest in the activities of a professional participant?
I. Execution of transactions of purchase and sale of securities on behalf of the client in a priority order in relation to transactions of purchase and sale of the broker itself;
II. Combining the implementation of brokerage and dealer activities;
III. Combining the implementation of professional activities with the implementation of investment banking;
IV. Combining the implementation of professional activities with the implementation of investment consulting.
A. I, II and III
B. All except III
C. II, III and IV
D. All of the above
Question code: 3.1.132 What is general rules regulation of conflicts of interest in the activities of professional
participants in the securities market?
I. Bringing information to clients about the existence of a conflict of interest;
II. Obtaining the written consent of clients to complete the transaction;
III. Refusal of a professional participant to complete a transaction in the event of a conflict of interest; IV. Informing the federal executive body for the securities market about a conflict of interest that has arisen and measures taken to regulate it.
Answers: A. Only I
C. I and III D. I, II and IV
Question Code: 3.2.133 Which of the following should a professional participant take if there is a conflict of interest?
I. Immediately notify the client about a conflict of interest;
II. Take all necessary measures to resolve the conflict of interest in favor of the client;
III. Compensate for losses if the conflict of interests of the professional participant and his client, of which the client was not notified, led to the execution of this order to the detriment of the interests of the client;
IV. Reimburse losses in any case if the conflict of interests of the professional participant and his client led to the execution of this order to the detriment of the interests of the client;
V. Conduct transactions of purchase and sale of securities on behalf of clients in a priority order in relation to dealer operations of the broker itself.
A. All except II B. I, II and IV
C. I, II, III and V
D. I, II, IV and V
Question code: 3.1.134 Which of the following is generally accepted practice in regulating conflicts of interest in
combining different types of activities? I. Requirement for the creation of "Chinese walls";
II. The requirement to inform the federal executive body for the securities market about combining various types of activities;
III. Broker's refusal to complete a transaction in the event of a conflict of interest;
IV. Application of criminal or administrative punishment to a broker in the event of a conflict of interest.
A. I
B. I and II
C. I, II and III
D. I and IV
Question code: 3.2.135 In accordance with the regulatory legal acts of the Russian Federation, a conflict of interest is: Answers:
A. The contradiction between the property and other interests of a professional participant in the securities market and (or) his employees, carrying out their activities on the basis of labor or civil - legal contract, and the client of the professional participant, as a result of which the actions (inaction) of the professional participant and (or) his employees cause losses to the client and (or) entail other unfavorable consequences for the client
B. Contradiction between property and other interests of employees investment banking and analytical division of a professional participant, as a result of which the actions (inaction) of the professional participant and (or) his employees cause losses to the client and (or) entail other unfavorable consequences for the client
C. The contradiction between the property and other interests of the members of the Board of Directors ( supervisory board) or other collegial management body, members of the collegial executive body, and / or a person exercising the powers of the sole executive body of a professional participant in the securities market and a client of a professional participant, as a result of which the professional participant incurs losses
D. A contradiction between the property and other interests of a professional participant in the securities market and his affiliates, as a result of which the actions (inaction) of the professional participant and (or) his employees cause losses to the client and (or) entail other unfavorable consequences for the client
Question code: 3.1.136 Conflicts of interest can be caused by:
I. Implementation of transactions of purchase and sale of securities of affiliated persons in relation to the client;
II. Combining several types of professional activities;
III. Combining professional activities with other types entrepreneurial activity; IV. Execution, on behalf of the client, of securities purchase and sale transactions on the over-the-counter market. Answers:
A. Only I
B. Only I and IV C. Only II and III
D. I, II, III and IV
Question code: 3.2.137 A conflict of interest is most likely to arise in the following situations:
I. Between a client and an employee of a professional participant, if this employee has access to proprietary (confidential) information or unauthorized access to such information for the purpose of its subsequent use in their own interests or the interests of third parties;
II. Between a client and a professional participant, if the same employee is responsible for making transactions on the securities market on behalf of clients, as well as transactions in the interests and at the expense of the company itself;
III. Between the employees of the investment banking division and the analytical division, if the investment company has an underwriting agreement with the issuer, information on the securities of which is planned to be included in the analytical report of the company;
IV. Between a professional participant and its affiliates, if the professional participant has the opportunity to influence the decisions made by the governing bodies of the affiliated person.
A. Only I
B. Only I and II
C. III and IV
D. I and IV
Question code: 3.2.138 A conflict of interest can arise in the following situations:
I. Between a client and a professional participant, in case the professional participant refuses to execute the client's order to withdraw funds until the client pays for the services rendered by the professional participant;
II. Between the professional participant and / or his employee and the client in the event that the employee of the professional participant is simultaneously responsible for accounting trading operations with securities, as well as for their commission;
III. Between a professional participant and / or his employee and the client, if the employee is responsible for providing information to the client about their positions (the state of the investment portfolio), as well as for performing transactions with the same client.
A. I and II
B. I and III
C. II and III
D. All of the above
Question code: 3.2.139 Conflicts of interest are most likely when the following activities are combined:
I. Brokerage and dealer activities;
II. Securities management activities and investment fund management activities, mutual investment funds and non-state pension funds;
III. Providing services as an underwriter and financial advisor;
IV. Depository activities and activities of a specialized depository of investment funds, mutual investment funds and non-state pension funds.
A. I and IV
B. II and III
C. I and III
D. II and IV
Question code: 3.1.140 When combining brokerage and dealer activities, a conflict of interest can be realized through:
I. Use of information and / or reasonable assumptions about the intentions and / or actions of clients;
II. Providing targeted influence on the process of making an investment decision by a client or making investment decisions in relation to the client's securities and funds, stimulating the formation of the required trend in the market;
III. Violation of the principle of priority of the execution of client orders in comparison with their own operations;
IV. Making transactions on behalf of the client ahead of their own. Answers:
A. I, II, IV
B. I, III, IV
C. I, II, III
D. II, III, IV
Question code: 3.1.141 In accordance with the normative legal acts of the federal executive body for the market
in order to prevent a conflict of interest and reduce its negative consequences, a professional participant must comply with the principle:
A. Priority of the client's interests over his own interests
B. Legality
C. Reasonableness and good faith
D. Inadmissibility of abuse of the right and circumvention of the rules established by law
Issue code: 3.2.142 In accordance with the regulatory legal acts of the federal executive body for the market
in the event of a conflict of interest, a professional participant is obliged to: I. Immediately notify clients of the occurrence of such a conflict of interest;
II. Develop and approve a list of measures aimed at preventing conflicts of interest in the implementation of professional activities in the securities market;
III. Notify the client about his right to file complaints against the actions of a professional participant to a self-regulatory organization, of which the professional participant is a member, to the federal executive body for the securities market and to the court;
IV. Take all necessary measures to resolve it in favor of the client. Answers:
A. I and III
B. II and IV
C. I and IV
D. II and III
Question code: 3.1.143 Specify possible consequences resolving conflicts of interest between a broker and his client,
which the client was not notified before the broker received the corresponding order and which led to the infliction of losses on the client:
A. The broker is obliged to compensate only the actual damage caused to the client
B. The broker is obliged to compensate for the losses caused in the manner prescribed by the civil legislation of the Russian Federation
C. The broker is obliged to reimburse only the loss of profits that the client could have obtained in case of proper notification
D. The client's losses are reimbursed at the expense of the compensation fund of the self-regulatory organization, of which the broker is a member.
Question code: 3.1.144
TO measures aimed at preventing the emergence of a conflict of interest include: I. Disclosure to clients and investors of information on combining various types of activities; II. Disclosure of lists of affiliated persons;
III. Creation of "Chinese walls";
IV. Guaranteeing the client's income from investment. Answers:
A. Only I and II B. I, III, IV
Question code: 3.1.145 To measures to prevent a conflict of interest, as well as to resolve a conflict that has arisen
interests in favor of the client include: I. Refusal to carry out OTC transactions;
II. Development and approval of an internal document, which should define measures aimed at preventing a conflict of interest, its development and its resolution in favor of the client;
III. Prohibition by an employee of combining powers that give rise to a conflict of interest;
IV. Allocation by a professional participant of units performing operations on different types activities, in separate and independent units.
A. Only III and IV
B. II, III, IV
C. I and IV
D. Only II and III
Question code: 3.1.146 Factors contributing to the emergence of a conflict of interest include:
I. The broker's desire to maximize its profits by increasing the received commission and extracting other additional income from the transaction concluded by the client;
II. Broker's aspirations to reduce the cost of services provided; III. Broker's desire to increase the number of its clients;
IV. Broker's aspiration to cover as many regions as possible. Answers:
A. I and IV
B. II and III
C. I and II
D. III and IV
