4) Summary and helpful tips

Question 1

Summarize all the standards (7x22)

Answer 1

Question 2

Do you need to know the number of the standards? (2)

Answer 2

• You need to know the name of the standard but do not need to state the number. e.g. Loyalty, prudence and care (you don’t need III(A)).
• But you cannot simply say IIIA i.e. you must identify the name.

Question 3

What must you look at?

Answer 3

Look at the mark allocation. Mentioning and discussing each standard is worth 2 – 3 marks and thus this gives you an idea of how many standards are likely relevant in the case study

Question 4

The usual question: “______ whether each of X’s actions violate the CFA Institute Standards of Professional Conduct. Your answer should entail identifying the __________ Standard and explaining whether it is violated.”

Answer 4

Explain
relevent

Question 5

Comment on each of the person’s actions – not only those ones which relate to a violation.

Answer 5

True

Question 6

If the person is a CFA charter holder and they violate any other standard, what standard do they by proxy violate?

Answer 6

If the person is a CFA charter holder and they violate any other standard, then they also violate IIV(A): Conduct as a member of the CFA Institute. (Ordering is important – the violation of this standard is a consequence of violating other standards i.e. it is an ‘indirect violation’).

Question 7

If the person has violated any standard, then they also violate I(_): Misconduct as their acts reflect adversely on their professional reputation, integrity or competence.

(________ is important – the violation of this standard is a consequence of violating other standards i.e. it is an ‘__________ violation’). Note: a person can also directly violate the misconduct standard e.g. by being dishonest with a client etc. (see also example 12)

These two violations usually only count 1 mark each as they are indirect

Answer 7

D
ordering
indirect

Question 8

What must you keep an eye out for?

Answer 8

Always look to see whether the actions of the individual impact on their duty to their clients (Standard III) or duty to employer (Standard IV). These are the ones which may be less obvious but still relevant.