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7 Cards in this Set
- Front
- Back
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b.) explain the ethical responsibilities required by the Code and Standards, including the multiple sub-sections of each Standard (I. Professionalism)
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I. Professionalism
A. Knowledge of the law i.Must know and comply with applicable laws, rules, and regulations. ii. When in conflict, follow stricter laws iii. Must not knowingly participate in violations and must disassociate oneself from participation B. Independence and objectivity i. Achieve and maintain independence and objectivity in their activities ii. Must not offer or accept any gift that could be expected to compromise their own or another’s independence and objectivity C. Misrepresentation i. Do not misrepresent analysis, recommendation, or other professional activities D. Misconduct i. Do not engage in dishonest, fraud, or deceit or commit any act that reflects adversely on their professional reputation, integrity, and competence |
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b.) explain the ethical responsibilities required by the Code and Standards, including the multiple sub-sections of each Standard (II. Integrity of Capital Markets)
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II. Integrity of Capital Markets
A. Material nonpublic information i. May not act or cause anyone to act on any material nonpublic information B. Market manipulation i. May not engage in practice that distort prices or inflate trading volume with intent to mislead market participants |
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b.) explain the ethical responsibilities required by the Code and Standards, including the multiple sub-sections of each Standard (III. Duties to Clients)
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III. Duties to Clients
A. Loyalty, Prudence, and Care i. Exercise prudent judgment ii. Act for the benefit for the client and place clients’ interests before your own iii. Must determine applicable fiduciary duty and must comply with such duty to persons and interests to whom it’s owed B. Fair dealing i. Deal fairly and objectively with all clients when providing analysis, making recommendations, taking action, or other activities C. Suitability i. When advising: 1. make reasonable inquiry into a client investment experience, objectives, and constraints prior to making recommendations or taking action and reassess this info regularly 2. determine that an investment is suitable for a client based on written objectives, mandates, and constraints before recommending or taking action 3. judge suitability of investments in context of client’s total portfolio ii. When members and candidates are responsible for managing a portfolio, must make recommendations or take actions that are consistent with stated objectives and constraints D. Performance Presentation i. Must ensure performance information is fair, accurate, and complete E. Preservation of Confidentiality i. Current, former, and prospective clients info must be kept confidential 1. information concerns illegal activities on the part of the client 2. disclosure is required by law 3. the client or prospective client permits disclosure of the info |
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b.) explain the ethical responsibilities required by the Code and Standards, including the multiple sub-sections of each Standard (IV. Duties to Employers)
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IV. Duties to Employers
A. Loyalty i. Must act for benefit of employer and not deprive employer the advantage of their skills, divulge confidential info, or cause harm to employer B. Additional Compensation Arrangements i. Do not accept gifts, benefits, or compensation that competes with or creates a conflict of interest with heir employer’s interest unless you obtain written consent from all parties involved C. Responsibilities of Supervisors i. Members and candidates must make reasonable efforts to detect and prevent violations of laws, regs, and Code & Standards by anyone under their supervision |
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b.) explain the ethical responsibilities required by the Code and Standards, including the multiple sub-sections of each Standard (V. Investment Analysis, Recommendations, and Actions)
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V. Investment Analysis, Recommendations, and Actions
A. Diligence and Reasonable Basis i. Exercise diligence, independence, and thoroughness in analysis, recommendations, and actions ii. Have reasonable and adequate basis supported by research and investigation for any analysis, recommendation, or action B. Communication with Clients and Prospective Clients i. Disclose to clients and prospective clients the basic format and principles of investment process used to analyze investments, select investments, and construct portfolios and promptly disclose any changes that affect these processes ii. Use reasonable judgment in identifying factors important to analyses, recommendations, or actions and include these factors in communications to clients and prospective clients iii. Distinguish between fact and opinion C. Record Retention i. Develop and maintain appropriate records to support their investment analysis, recommendations, and actions and communication with clients |
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b.) explain the ethical responsibilities required by the Code and Standards, including the multiple sub-sections of each Standard (VI. Conflicts of Interest)
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VI. Conflicts of Interest
A. Disclosure of Conflicts i. Disclosure all matters that could be expected to impair independence and objectivity or interfere with duties to clients or employers. Disclosures should be prominent, in plain language, and communicate info effectively B. Priority of Transactions i. Transactions for clients and employers have priority over transactions where one is a beneficial owner C. Referral fees i. Disclose to clients and employers any compensation or benefit received/paid to others for the recommendation of products or services |
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b.) explain the ethical responsibilities required by the Code and Standards, including the multiple sub-sections of each Standard (VII. Responsibilities as a CFA Institute Member or CFA Candidate)
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VII. Responsibilities as a CFA Institute Member or CFA Candidate
A. Conduct as members and candidates in the CFA program i. Do no engage in any conduct that compromises the reputation or integrity of CFA B. Reference to CFA institute, the CFA designation, and the CFA program i. When referring to the CFA, must not misrepresent or exaggerate the meaning or implications of membership, holding the designation, or candidacy |
