Asset Manager Code of Professional Conduct - Reading 6

Question 1

General Principles of Conduct

Answer 1

1. Professional and Ethical Manner all the time
2. Act for benefit of the clients
3. Act with independence and objectivity
4. Act with competence, skill and diligence
5. Communicate with clients in timely and accurate manner
6. Uphold applicable rules governing capital markets

Question 2

Code of Professional Conduct

Answer 2

A. Loyalty to clients 
B. Investment Process and Actions 
C. Trading 
D. Risk Management, Compliance and Support 
E. Performance and Valuation 
F. Disclosures

Question 3

A. Loyalty to Clients

Answer 3

GIC

• Interest of Clients
• Confidentiality
• Gifts - affect the loyalty, objectivity Independence

Question 4

B. Investment Process and Action

Answer 4

• Care, judgement
• Not engage in practices that distort prices or inflate trading volume.
• Fairly and objectively with all clients
• Reasonable and adequate basis for decision making
• Manage portfolio according to specific mandate, strategy or style
• before taking decisions - determine the IPS clients and suitable to the clients

Question 5

C. Trading

Answer 5

• Not act on nonpublic material information
• Priority to Client transactions
• Commissions from client trades pay only for investment related products and not management of the firm
• Best execution for all trades
• Fair and equitable allocation among client accounts

Question 6

D. Risk Management, Compliance and Support

Answer 6

• Policies to ensure practices comply with code and legal requirements
• Compliance officer - Administrating and Investigation
• Accurate info to client and independent third party reviews
• Appropriate records - easy accessible
• Employ staff for investigation, analysis , implement and monitor investment decisions
• Business continuity plan for disaster recovery and periodic disruptions
• Risk Management Framework

Question 7

E. Performance and Valuation

Answer 7

• Performance info - fair, timely and accurate

- Fair Market Price to value client holding.

Question 8

F. Disclosures

Answer 8

• Communicate with clients - ongoing and timely basis
• Disclosures - truthful, complete accurate and timely and communicated effectively
• Including material facts in disclosures
• To disclose the following: conflict of interest, regulatory or disciplinary actions, investment process, management fees, soft/bundled commissions, performance of client’s investment, valuation methods, shareholder voting policies, trade allocation policies, results of reviews, significant personnel or organisational changes, risk management process.