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Professionalism
Members and Candidates must not knowingly make any misrepresentations
relating to investment analysis, recommendations, actions, or other
professional activities.
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.
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
A. Knowledge of the LawB. Independence and ObjectivityC. MisrepresentationD. Misconduct
Responsibilities as a CFA Institute Member or CFA Candidate
PRIORITY OF TRANSACTIONS: Investment transactions for clients and
employers must have priority over those in which you are a beneficial
owner.
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 must not engage in practices that distort
prices or artificially inflate trading volume with the intent to mislead
market participants.
LOYALTY: In matters related to employment, you must act for the
benefit of your employer and not deprive your employer of the advantage
of your skills and abilities, divulge confidential information, or
otherwise cause harm to your employer.
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.
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 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.
inquiries related to professional conduct.
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.
INDEPENDENCE AND OBJECTIVITY: Use reasonable care and judgment to
achieve and maintain independence and objectivity in professional
activities. Do not offer, solicit, or accept any gift, benefit,
compensation, or consideration that reasonably could be expected to
compromise your own or another's independence and objectivity.
Professionals should consider the long-term health of the market as a whole when making decisions.
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.
Global Investment Performance Standards
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.
DISCLOSURE OF CONFLICTS: You must make full and fair disclosure of all
matters which may impair your independence and objectivity or interfere
with respective duties to your employer, clients, or prospective
clients. You must ensure that such disclosures are prominent, are
delivered in plain language, and communicate the relevant information
effectively.
Duties to Clients and Prospective Clients
Integrity of Capital Markets
"Act with integrity, competence, diligence, 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."
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 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.
"Promote the integrity of, and uphold the rules governing, capital markets."
CONDUCT AS MEMBERS AND CANDIDATES IN THE CFA PROGRAM: You 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.
MISCONDUCT: Do 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.
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. Disclosure ConflictsB. Priority of TransactionsC. Referral Fees
Investment Analysis, Recommendations, and Action
SUSTAINABILITY (Part 1): When you are in an advisory relationship with
a client, you 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
To ensure that the organizations and its members develop, promote and
follow the highest ethical standards in the investment industry.
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
LOYALTY, PRUDENCE, AND CARE: You have a duty of loyalty to your
clients and must act with reasonable care and exercise prudent judgment.
You must act for the benefit of your clients and place the clients'
interests before your employer's or your own interests. In relationships
with clients, you must determine applicable fiduciary duty and must
comply with such duty to persons and interests to whom it is owed.
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.
A. Loyalty, Prudence and CareB. Fair DealingC. SuitabilityD. Performance PresentationE. Preservation of Confidentiality
SUSTAINABILITY (Part 2): You are responsible for managing a portfolio
according to a specific mandate, strategy or style, you must only make
investment recommendations or take investment actions that are
consistent with the stated objectives and constraints of the portfolio.
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