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Transaction that involves the payment of commission
1. Professionalism, 2. Integrity of Capital Markets, 3. Duties to
Clients, 4. Duties to Employers, 5. Investment Analysis, Recommendations
and Actions, 6. Conflicts of Interest 7. Responsibilities
1. Diligence and Reasonable Basis, 2. Communication with Clients and prospective Clients, 3. Record Rentention
1. put client interest first 2. perfect disclosures to clients, 3.
promote effective policies 4. support self regulation 5. work
environment supporting the Code and Standards
1. Conduct as Members, 2. Reference to CFA Institute
1. use of total return 2. risk management 3. evaluation of portfolio context, 4. Security restrictions 5. delegation of duty
1. brokerages is property of the client 2. investment managers have a
duty to keep costs low and use client brokerage to benefit clients
1. define the product/service, 2. determine usage 3. mixed use analysis
1. Act with integrity 2. Place the interests of clients above personal
interests, 3. Reasonable care and professional judgment in investment
analysis 4. Encourage others 5. promote the integrity of capital markets
6. maintain your professional competence
brokerage is the amount paid to the broker
1. diversification to recude risk 2. use a risk/return profile in
portfolio context to weight an investment 3. unneccessary churning is
prohibited, 4. income should be balanced vs growth, 5. trustees are
allowed to delegate investment authority.
a firm employee who conducts research, takes investment decisions on
behalf of a client, may benefit from research reports or investment
decisions
any forum in which the analyst makes recommendation
1. General 2. Relationship with Clients, 3.Selection of brokers 4.
Evaluation of Research, 5. Client directed brokerage 6. Disclosure 7.
Record Keeping
at least annually
no
anyone who lives with the analyst or manager
1. Research Objectivity Policy: written policy that is supervised and
send to clients annually 2. public appearances: disclose conflicts of
interest, 3. Reasonable and adequate basis: review to spot mistakes. 4
Investment Banking: seperate Research from IB, analyst do not report to
IB, IB is not approving the research. 5. Researrch Analyst compensation:
compensation should be linked to quality of research but not to IB
profit. 6. Relationship with subject companies: the subject company must
not see the repo
1. Knowledge of the law, 2. Independence and Objectivity, 3. Misrepresentation 4. Misconduct
1. Disclosure of Conflicts 2. Priority of Transactions 3. Referral Fees
1. determine the client's financial situation, investment objectives
and level of experience 2. adequately disclose the basic security
selection process 3. conduct internal checks 4. stick to stated
strategy, 5. notify about change
company whose securities are covered by research report or recommendation]
involve the use of client brokerage by an investment manager to obtain certain products
the types of research received, the extend of its use and whether an affiliated broker is involved
1. Loyalty, 2. Additional Compensation Arrangements, 3. Responsibilities of Supervisors
any employee who is primarily respnsible for any part of the research process
an arrangement under which the client tells the manager which specific broker should execute the trades
1. Loyalty, Prudence and Care, 2. Fair Dealing 3. Suitability to a
client or portfolio 4. Performance Presentation 5. Preservation of
Confidentiality
Commission generated on both agency and principal trades
1. care 2. skill 3. caution 4. loyalty 5. impartially
transaction that involves a security the broker owns
1. Material nonpublic information, 2. Market Manipulation
any employee who conducts investment research or invests, regardles of his title not stating investment manager
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