7 Standards of Professional Conduct

Question 1

The 7 Standards of Professional Conduct

Answer 1

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 as a CFA institute Member or CFA Candidate

Question 2

1. Professionalism

Answer 2

A. Knowledge of the Law

B. Independence and Objectivity

C. Misrepresentation

D. Misconduct

Question 3

2. Integrity of Capital Markets

Answer 3

A. Material Nonpublic Information

B. Market Manipulation

Question 4

3. Duties to Clients

Answer 4

A. Loyalty, Prudence, and Care

B. Fair Dealing

C. Suitability

D. Performance Presentation

E. Preservation of Confidentiality

Question 5

4. Duties to Employers

Answer 5

A. Loyalty

B. Additional Compensation Arrangements

C. Responsibilities of Supervisors

Question 6

5. Investment Analysis, Recommendations, and Actions

Answer 6

A. Diligence and Reasonable Basis

B. Communication with Clients and Prospective Clients

C. Record Retention

Question 7

6. Conflicts of Interest

Answer 7

A. Disclosure of Conflicts

B. Priority of Transactions

C. Referral Fees

Question 8

7. Responsibilities as a CFA institute Member or CFA Candidate

Answer 8

A. Conduct as Participants in CFA Institute Programs

B. Reference to CFA Institute, the CFA Designation, and the CFA Program