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A. Material Nonpublic InformationB. Market Manipulation
When communicating investment performance information, Members or
Candidates must make reasonable efforts to ensure the information is
fair, accurate and complete.
A. Loyalty, Prudence and CareB. Fair DealingC. SuitabilityD. Performance PresentationE. Preservation of Confidentiality
Members and Candidates must make full and fair disclosure of all
matters that could reasonably be expected to impair their independence
and objectivity or interfere with respective duties to their clients,
prospective clients and employer. Members and Candidates must ensure
that such disclosures are prominent, are delivered in plain language,
and communicate the relevant information effectively.
A. LoyaltyB. Additional Compensation AgreementsC. Responsibilities of Supervisors
A. Disclosure ConflictsB. Priority of TransactionsC. Referral Fees
A. Conduct as Mem. and Cand. in the CFA ProgramB. Reference to CFA Inst., the CFA Desig. and CFA Program
1. Disclose to clients and prospective clients the basic format and
general principles of the investment processes used to analyze
investments, select securities and construct portfolios, and must
promptly disclose any changes that might materially affect those
processes.2. Use reasonable judgment in identifying which factors are
important to their investment analyses, recommendations or actions, and
include those factors in communications with clients and prospective
clients.3. Distinguish between fact and
Members and Candidates must not accept gifts, benefits, compensation
or consideration that competes with, or might reasonably be expected to
create a conflict of interest with, their employer's interest unless
they obtain written consent from all parties involved.
Members and Candidates must keep information about current, former and
prospective clients confidential unless:1. The information concerns
illegal activities on the part of the client or prospective client,2.
Disclosure is required by law, or3. The client or prospective client
permits disclosure of this information.
1. Exercise diligence, independence and thoroughness in analyzing
investments, making investment recommendations and taking investment
actions. 2. Have a reasonable and adequate basis, supported by
appropriate research and investigation, for any investment analysis,
recommendation or action.
Members and Candidates must deal fairly and objectively with all
clients when providing investment analysis, making investment
recommendations, taking investment action, or engaging in other
professional activities.
Investment transactions for clients and employers must have priority
over investment transactions in which a Member or Candidate is the
beneficial owner.
Members and Candidates must not engage in any professional conduct
involving dishonesty, fraud, or deceit or commit any act that reflects
adversely on their professional reputation, integrity, or competence.
Members and Candidates have a duty of loyalty to their clients and
must act with reasonable care and exercise prudent judgment. Members and
Candidates must act for the benefit of their clients and place their
clients' interests before their employer's or their own interests.
Members and Candidates who possess material nonpublic information that
could affect the value of an investment must not act or cause others to
act on the information.
Members and Candidates must develop and maintain appropriate records
to support their investment analysis, recommendations, actions and other
investment-related communications with clients and prospective clients.
In matters related to their employment, Members and Candidates must
act for the benefit of their employer and not deprive their employer of
the advantage of their skills and abilities, divulge confidential
information, or otherwise cause harm to their employer.
1.When Members and Candidates are in an advisory relationship with a
client, they must:a) make a reasonable inquiry into a client's or
prospective client's investment experience, risk and return objectives,
and financial constraints prior to making any investment recommendation
or taking investment action and must reassess and update this
information regularly.b) determine that an investment is suitable to the
client's financial situation and consistent with the client's written
objectives, mandates and con
Members and Candidates must not engage in practices that distort
prices or artificially inflate trading volume with the intent to mislead
market participants.
Members and Candidates must not engage in any conduct that compromises
the reputation or integrity of CFA Institute or the CFA designation, or
the integrity, validity or security of the CFA examinations.
Members and Candidates must understand and comply with all applicable
laws, rules, and regulations (including the CFA Institute Code of Ethics
and Standards of Professional Conduct) of any government, regulatory
organization, licensing agency, or professional association governing
their professional activities. In the event of conflict, Members and
Candidates must not knowingly participate or assist in and must
disassociate from any violation of such laws, rules, or regulations.
Members and Candidates must make reasonable efforts to detect and
prevent violations of applicable laws, rules, regulations, and the Code
and Standards by anyone subject to their supervision or authority.
When referring to CFA Institute, CFA Institute membership, the CFA
designation or candidacy in the CFA Program, Members and Candidates must
not misrepresent or exaggerate the meaning or implications of
membership in CFA Institute, holding the CFA designation, or candidacy
in the CFA Program.
A. Diligence and Reasonable BasisB. Communication with Clients and Prospective ClientsC. Record Retention
Members and Candidates must disclose to their employer, clients and
prospective clients, as appropriate, any compensation, consideration or
benefit received from, or paid to, others for the recommendation of
products or services.
Members and Candidates must not knowingly make any misrepresentations
relating to investment analysis, recommendations, actions, or other
professional activities.
I. ProfessionalismII. Integrity of Capital MarketsIII. Duties to
ClientsIV. Duties to EmployersV. Investment Analysis, Recommendations
and ActionsVI. Conflicts of InterestVII. Responsibilities as a CFA Inst.
Mem. or CFA Cand.
Members and Candidates must use reasonable care and judgment to
achieve and maintain independence and objectivity in their professional
activities. Members and Candidates must not offer, solicit, or accept
any gift, benefit, compensation, or consideration that reasonably could
be expected to compromise their own or another's independence and
objectivity.
A. Knowledge of the LawB. Independence and ObjectivityC. MisrepresentationD. Misconduct
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