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1) stay informed 2) review procedures 3) maintain current files
A) Material Nonpublic Information - Members/Cands who possess
material, non-public information that could affect the value of an
investment must not act or cause others to act on the info. B) Market
Manipulation - Member/Cands must not engage in practices that distort
prices or artificially inflate trading volume with the intent to mislead
market participants.
- firms (Code and Standards aimed at individual investment professionals who are members of CFA Institute or candidates).
- if a bench mark is used, yes (misrepresentation) but it is not
absolutely required and some complicated investment strategies don't
have a good comparable one.
- "Party X claims compliance with the CFA Institute Code of Ethics and
Standards of Professional Conduct. This claim has not been verified by
the CFA Institute."
- law that governs the Mem/Can conduct.
A) Knowledge of the law - Members and Candidates must understand and
comply with all applicable laws and regulations. In event of conflict,
members and candidates must comply with stricter one. Cannot knowingly
participate in/assist and must dissociate from any violation.
B)Independence and Objectivity - Members/Cands must use reasonable care
and judgment to achieve/maintain independence+objectivity in their
professional activities. Cannot accept gifts/compensation that could
reasonably be expected to compr
professionalism integrity of capital markets duties to clients duties
to employers investment analysis, recommendations, and actions conflicts
of interest responsibilities as CFA Institute Mem/Cand
- refuse. Even if they don't benefit you personally.
1) Act with integrity, competence, diligence, and respect and in an
ethical manner with the public, clients, prospective clients, employers,
employees, colleagues in the investment profession, and other
participants in the global capital markets. 2) Place the integrity of
the investment professional and the interests of the clients above their
own personal interests. 3) Use reasonable care and exercise independent
professional judgment when conducting investment analysis, making
investment recommendations,
- modest gifts and entertainment are acceptable from outside sources,
but special care must be taken so this doesn't interfere with their
clients' best interests. - gifts from clients can be distinguished from
gifts given by entities looking to influence as there is already a
compensation agreement in a client relationship between member/client
and gift from client could be considered supplementary compensation
(must still report gift to employer). Less likely to gain influence that
is detrimental to other
- development, maintenance, and demonstration of a strong culture of integrity within the firm by senior management.
- not on volatile ones.- can provide info on investment products that
have guarantees built into the structure of the products themselves or
for which an institution has agreed to cover any losses.
- inaction combined with continuing association those involved in
illegal/unethical conduct may be construed as participation or
assistance in the illegal or unethical conduct.
A) Loyalty - In matters related to employment, members/Cands must act
for benefit of their employer and not deprive them of their skills or
divulge secret info or hurt them in any way. B) Additional Compensation
Agreements - Members/Cands must not accept gifts/compensation that could
reasonable be expected to create a conflict of interest with employer's
interest unless they receive written consent form from all parties
involved.C) Responsibilities of Supervisors - Members/Cands must make
reasonable attempt
- Code: set of principles that define he overarching conduct CFA
Institute expects from its members and CFA Program candidates. -
Standards: outline professional conduct that constitutes fair and
ethical business practices.
A) Disclosure of Conflicts - Mem/Cans must make full and fair
disclosure regarding any matters that could reasonably be expected to
impair independence/objectivity or interfere with duties to clients/PCs
or employers. Such disclosures must be prominent and in plain language +
well communicated. B) Priority of Transactions - Investment
transactions for clients/employers has priority over transactions where
Mem/Can is beneficial owner. C) Referral Fees - Mems/Cands must disclose
to their employers/clients/PCs
- when they knowingly (or should have known) participated.
1) develop/adopt code of ethics. 2) provide info on applicable laws 3) establish procedures for reporting violations
- yes, as long as the firm does not commit its research department to providing a favourable recommendation.
A) Conduct as Participants in CFA Institute Programs - mem/Cands must
not engage in any behaviour that would compromise reputation/integrity
of CFA programs. B) Reference to CFA Institute, CFA designation, and the
CFA Program - Mems/Cands must not misrepresent/exaggerate
meaning/implication of membership in CFA.
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