Exam (elaborations)
ETHICS, ETHICAL AND PROFESSIONAL STANDARDS QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
- Course
- Institution
ETHICS, ETHICAL AND PROFESSIONAL STANDARDS QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
[Show more]
Content preview
ETHICS, ETHICAL AND PROFESSIONALSTANDARDS QUESTIONS AND
ANSWERS WITH SOLUTIONS 2024
Code of Ethics - ANSWER 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.
Place the integrity of the investment profession and the interests of clients above their own personal
interests.
Use reasonable care and exercise independent professional judgment when conducting investment
analysis, making investment recommendations, taking investment actions, and engaging in other
professional activities.
Practice and encourage others to practice in a professional and ethical manner that will reflect credit on
themselves and the profession.
Promote the integrity and viability of the global capital markets for the ultimate benefit of society.
Maintain and improve their professional competence and strive to maintain and improve the
competence of other investment professionals.
Seven Standards of Professional Conduct - ANSWER I. Professionalism
II. Integrity of Capital Markets
III. Duties to Clients
IV. Duties to Employers
V. Investment Analysis, Recommendations and Actions
VI. Conflicts of Interests
VII. Responsibilities as a CFA Institute Member or CFA Candidate
Standard of Professional Conduct I. Professionalism - ANSWER A. Knowledge of the Law
,B. Independence and Objectivity
C. Misrepresentation
D. Misconduct
Standard of Professional Conduct II. Integrity of Capital Markets - ANSWER A. Material Nonpublic
Information
B. Market Manipulation
Standard of Professional Conduct III. Duties to Clients - ANSWER A. Loyalty, Prudence, and Care
B. Fair Dealing
C. Suitability;
- 1. advisory relationship
- 2. managing portfolio
D. Performance Presentation
E. Preservation of Confidentiality (+ exceptions)
Standard of Professional Conduct IV. Duties to Employers - ANSWER A. Loyalty
B. Additional Compensation Agreements
C. Responsibilities of Supervisors
Standard of Professional Conduct V. Investment Analysis, Recommendations and Actions - ANSWER A.
Diligence and Reasonable Basis
B. Communication with Clients and Prospective Clients
C. Record Retention
Standard of Professional Conduct VI. Conflicts of Interests - ANSWER A. Disclosure of Conflicts
B. Priority of Transactions
C. Referral Fees
, Standard of Professional ConductVII. Responsibilities as a CFA Institute Member or CFA Candidate -
ANSWER A. Conduct as Participants in CFA Institute Programs
B. Reference to CFA Institute, the CFA designation, and the CFA Program
Standard I(A) Knowledge of the Law - ANSWER - Relationship between the Code and Standards and
Applicable Law (follow most strict law)
- Participation in or Association with Violations by Others (knowingly, report)
- Investment Products and Applicable
Recommendations Members:
- Stay informed
- Review procedures
- Maintain current files
- Legal counsel
- Dissociating from a violation (report)
Recommendations Firms:
- Develop and/or adopt a code of ethics
- Provide information on applicable laws
- Establish procedures for reporting violations
Standard I(B) Independence and Objectivity - ANSWER Standard:
- Use reasonable care, judgment to achieve and maintain independence in professional activities
- Do not offer, solicit, or accept any compensation, gift, benefit that could compromise independence or
objectivity
Guidance:
- Gifts are acceptable if disclosed
- Buy-side; Distinguish between gifts from clients and gifts from entities trying to influence a member's
behaviour
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Performance. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78121 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now