Book 1 L 1: Ethics _ GIPS Flashcards by rose palazzo

CFA Institute Professional Conduct Program

Covered by the CFA Institute Bylaws and the Rules of Procedure for Proceedings Related to Professional Conduct.
Based on the principles of fairness of the process to members and candidates and maintaining the confidentiality of the proceedings.

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The Disciplinary Review Committee of the CFA Institute Board of Governors

Has overall responsibility for the Professional Conduct Proram and enforcement of the Code of Standards.

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The CFA Institute Professional Conduct Staff

Conducts inquiries related to professional conduct.

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Circumstances that can prompt an inquiry by the CFA Institute Professional Conduct Staff.

Self-disclosure
Written complaints about a member or candidate
Evidence of misconduct received throuh public sources (media / broadcast)
A report by a CFA exam proctor
Analysis of exam materials and monitoring of social media by CFA Institute

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Once an inuquiry has begun, the Professional Conduct Staff may:

Request (in writing) an explation from the subject member or candidate and may:

Interview the member or candidate
Interview the camplainant or other third party
Collect documentation and recrods relevant tot he investigation.

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After an investigation into an inquiry,

the Professional Conduct Staff may decide to:

That no disciplinary sanctions are appropriate
To issue a cautionary letter
To discipline the member or candidate

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If a disciplinary sanction is proposed by a the Professional Conduct Staff the member or candidate may

Accept or reject tehe sanction
If they reject the sanction, the matter will be referred to a disciplinary review panel of CFA Institute members for a hearing.

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What may Disciplinary Sanctions include?

Condemnation by the members’ peers
Suspension of candidates continued participation in the CFA program

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CFA Code of Ethics

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 judgement 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.

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Code of Ethics

Act with integrity, competence, diligence, respect and in an ethical manner (with everyone)
Place the integrity of the investment profession and the needs of clients above their own.
Use reasonable care and exercise independent professional judgement
Practice and encourage others to practice in a professional and ethical manner
Promote the integrity and viability of the global capital markets
Maintain and improve professional competence (their own and others)

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The Standards of Professional Conduct

I. Professionalism

II. Integrity of Capital Markets

III. Duties to Clients

IV. Duties to Employers

V. Investment Analysis, Recommendations, and Actions

VI. Conflicts of Interest

VII: Responsibilities as a CFA Institute Member or CFA Candidate

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Standards of Professional Conduct

Professionalism

A. Knowledge of the Law

B. Independence and Objectivity

C. Misrepresentation

D. Misconduct

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Standards of Professional Conduct

Integrity of Capital Markets

A. Material Nonpublic Information

B. Market Manipulation

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Standards of Professional Conduct

Duties to Clients

A. Loyalty, Prudence and Care

B. Fair Dealing

C. Suitability

D. Performance Presentation

E. Preservation of Confidentiality

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Standards of Professional Conduct

Duties to Employers

A. Loyalty

B. Additional Compensation Arrangements

C. Responsibilities of Supervisors

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Standards of Professional Conduct

Investment Analysis, Recommendations, and Actions

A. Dilience and Reasonable Basis

B. Communication with Clients and Prospective Clients

C. Record Retention

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Standards of Professional Conduct

Conflicts of Interest

A. Disclosure of Conflicts

B. Priority of Transactions

C. Referral Fees

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Standards of Professional Conduct

Responsibilities As a CFA Institute Member or CFA Candidate

A. Conduct as Participants in CFA Institute Prorams

B. Reference to CFA Insitute, the CFA Desination and The CFA Program.

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Standards of Professional Conduct - Profressionalism

Knowledge of the Law

Must understand and comply with all applicable laws, rules and regulations (including CFA) of any government, regulatory organization, licensing agency, or professional association
In the event of conflict, comply with the more strict law, rule or regulation.
Must not knowingly participate or assist in any violation and must disassociate themselves from violations.

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Standards of Professional Conduct - Profressionalism

Independence and Objectivity

Must use reasonable care and judgement to achieve and maintain independence and objectivity in their professional activities.
Must not offer, solicit, or accept any gift , benefit, compensation or consideration that reasonably could be expected to compromise their own or another’s independence and objectivity.

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Standards of Professional Conduct - Profressionalism

Misrepresentation

Must not knowingly make any misrepresentations relating to investment analysis, recommendations, actions, or other professional activities.

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Standards of Professional Conduct - Profressionalism

Misconduct

Must not engage in any professional conduct involving dishonesty, fraud or deceit
Must not commit any act that reflects adversely on their professional reputation, integrity, or competence.

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Standards of Professional Conduct - Integrity of Capital Markets

Material Non-Public Information

Must not act or cause others to act on material nonpublic information that could affect the value of an investment.

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Standards of Professional Conduct - Integrity of Capital Markets

Market Manipulation

Must not engage in practices that distort prices or artificially inflate trading volume with the intent to mislead market participation.

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Standards of Professional Conduct - Duties to Clients

Loyalty, Prudence, and Care

Have a duty of loyalty to their clients
Must act with reasonable care and exercise prudent judgement
Must act for the benefit of their clients and place their clients’ interests before their employer’s or their own interests.

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Standards of Professional Conduct - Duties to Clients

Fair Dealing

Must deal fairly and objectively with all clients when providing investment analysis, making investment recommendations, taking investment action or engaging in other professional activities.

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Standards of Professional Conduct - Duties to Clients

Suitability

When in an advisory relationship with a client they must:
- make a reasonable inquiry into the client’s investment experience, risk and return objectives, and financial constraints prior to making a recommendation or taking action and must update this information regularly.
- Determine if an investment is suitable to the clients finaical situation and is consistent with their written objectives
- Judge the suitability of an investmetn in the context of the client’s overall portoflio
When responsible for managing a portoflio to a specific mandate, strategy or style they must:
- only make recommendations or take action consistent with stated objectives and contstraints.

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Standards of Professional Conduct - Duties to Clients

Performance Presentations

Must make reasonable efforts to ensure that it is fair, accurate and complete.

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Standards of Professional Conduct - Duties to Clients

Preservation of Confidentiality

Must keep information about current, former and prospective clients confidential unless:

The information concerns illegal activities on the part of the client or prospective client
Disclosure is required by law
The client permits it

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Standards of Professional Conduct - Duties to Employers

Loyalty

Must act for the benefit of their employer
Must not deprive their employer of the advantage of their skills and abilities
Must not divulge confidential information
Must not otherwise cause harm to their employer

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Standards of Professional Conduct - Duties to Employers

Additional Compensation Arrangements

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.

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Standards of Professional Conduct - Duties to Employers

Responsibilities of Supervisors

Must make reasonable efforts to ensure that anyone subject to their supervision or authority complies with applicable laws, rules regulations and the Code and Standards.

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Standards of Professional Conduct - Investment Analysis, Recommendations, and Actions

Diligence and Reasonable Basis

Must exercise diligence, independence, and thoroughness in analyzing investments, making investment recommendations, and taking investment actions.
Must have a reasonable and adequate basis, supported by appropriate research and investigation, for an investment analysis, recommendations or action.

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Standards of Professional Conduct - Investment Analysis, Recommendations, and Actions

Communication wiht Cilents and Prospective Clients

Must disclose the basic format and general principles of the investment processes used to analyze investments, select securities and construct portfolios and must promptly disclose any material changes.
Must disclose significant limitations and risks associated with the investment process.
Use reasonable judgement in identifying which factors are important to their investment analysis, recommendation or actions and include those factors in communications
Distinguish between fact and opinion

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Standards of Professional Conduct - Investment Analysis, Recommendations, and Actions

Record Retention

Must develop and maintain appropriate records to support their investment analysis, recommendations and actions

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Standards of Professional Conduct - Conflicts of Interest

Disclosure of Conflicts

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 clients/ employers.
Must ensure that disclosures are prominent, in plain langauge and communicate the relevant information effectively.

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Standards of Professional Conduct - Conflicts of Interest

Priority of Transactions

Must give priority to investmetn transactions for client s and employers over those where the candidate is the beneficial owner

Standards of Professional Conduct - Conflicts of Interest

Referral Fees

Must disclose to employers / clients any compensation, considerations or benefit received from or paid to others for the recommendation of products or services.

Standards of Professional Conduct - Responsibilities as a CFA Institute Member or CFA Candidate

Conduct as Participants in CFA Institute Programs

Must not engage in any conduct that compromises the reputation or integrity of the CFA Institute or the CFA designation or the integrity, validity or security of the CFA Institute programs.

Standards of Professional Conduct - Responsibilities as a CFA Institute Member or CFA Candidate

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

Must not misrepresent or exaggerate the meaning or implications of membership in CFA Institute, holding he CFA designation, or candidacy in the CFA program.

What should a member do if they become aware of violations or applicable rules or laws?

Approach a supervisor or compliance department
Disassocoiate from the activity
In extreme cases, resign from the firm.

Standards of Professional Conduct - Profressionalism
Knowledge of the Law

Recommendations for Members

Establish or encourage the firm to establish procedures to keep emoloyees information of chanes to applicable laws/rules/regs.
Review (or encourage) the firm’s written compliance procedures on a regular basis.
Maintain, or encourage employer to maintain, copies of current laws/rules/regs
When in doubt about legality, consult supervisor / compliance / lawyer
When dissociating from violations, keep records documenting the violations, and encourage employer to end violations.
There is no CFA requirement to report wrongdoers, but local law may require it.
“Strongly encouraged” to report violations to the CFA Institute Professional Conduct Program

Standards of Professional Conduct - Profressionalism
Knowledge of the Law

Violations of this standard include:

Violating applicable laws/ rules / regs or the CFA Code of standards
Not adhering to the most strict law / rule / reg
Not approachin a supervisor / compliance group when violations are identified
Not disassociatin themselves from a violation

Standards of Professional Conduct - Profressionalism
Knowledge of the Law

Recommendations for firms

Have a code of ethics
Provide employees with information on laws/rules and regs
Have procedures for reporting suspected violations

Standards of Professional Conduct - Profressionalism
Independence and Objectivity

Recommendations for Members

Members or firms should pay for their own travel to company events or tours when practicable and limit the use of cooperate aircraft to trips for which commercial travel is not an alternative.

Standards of Professional Conduct - Profressionalism
Independence and Objectivity

Recommendations for Firms

Restrict employee participation in IPOs and private placements, require pre-approval for participation
Appoint a compliance officer, have written policies on independence and objectivity and clear procedures for reporting violations.
Limit gifts, other than from clients, to token items only.

Standards of Professional Conduct - Profressionalism
Independence and Objectivity

Violations include:

Allow investment recommendations or analysis to ve influenced by pressure or inducement
Allocating oversubscribed IPOs to a personal account
Accepting, soliciting or offering thins of value that could be expected to influence the member’s or others independence or objectivity
Not disclosing client gifts (prior to acceptance if possible)
Accepting compensation that dependent on the conclusions, recommendations or market impact of the report
Failure to disclosure that research is issuer-paid

Standards of Professional Conduct - Profressionalism
Misrepresentation

Recommendations for Members

Prepare a summary of experience, qualifications, and services a member is able to perform
Encourage employers to develop procedures for verifying marketing materials provided by 3rd parties
Cite the source of any summaries of materials provided by others
Keep copies of all reports/articles/materials used in the preparation of research reports.
Provide a list - in writing - of the firms’ available services and qualifications
Periodically review documents and communications of members for any misrepresentation of employee or firm qualifications and capabilities.

Standards of Professional Conduct - Profressionalism
Misrepresentation

Violations include

Presenting third-party research as your won, without attribution to the source.
Guaranteeing a specific return on securities that do not have an explicit guarantee from a government body or financial institution.
Selecting a valuation service because it puts the highest value on untraded security holdings.
Presenting performance data or attribution analysis that omits accounts or relevant variables.
Offering false or misleading information about the analyst’s or firm’s capabilities, expertise or experience.
Using marketing materials from a thrid party that is misleading

Standards of Professional Conduct - Profressionalism
Misconduct

Recommendations for Firms

Develop and adopt a code of ethics and make clear that unethical behavior will not be tolerated.
Give employees a list of potential violations and sanctions, includin dismissal
Check references of potential employees

Standards of Professional Conduct - Profressionalism
Misconduct

Violations include:

Dishonesty, fraud or deceit
Committing any act that reflects adversely on their professional reputation, integrity, or competence
Using the enforcement of the standard against another member to settle personal, political or other dispute that are not related to professional ethics or competence.

Standards of Professional Conduct -Integrity of Capital Markets

Material Non Public Information

Recommendations for Members

Make reasonable efforts to achieve public dissemination by the firm of information they posses
Encourage their firms to adopt procedures to present the misuse of material nonpublic information.

Standards of Professional Conduct -Integrity of Capital Markets

Material Non Public Information

Recommendations for Firms

Use a firewall within the firm, with elements including:
- exercise substantial control of relevant interdepartmental communications through a clearance area such as compliance or legal depts.
- Review employee trades
- Maintain ‘watch’, ‘restricted’ and ‘rumor’ lists
Monitor and restrict proprietary trading while a firm is in possession of material nonpublic information.
- Only take the opposite side of unsolicited customer trades.

Standards of Professional Conduct -Integrity of Capital Markets

Material Non Public Information

Violations include

Acting or causing others to act on material nonpublic information
Actin on material nonpublic information by transacting / recommending mutual funds containing the subject securities, as well swaps / options contracts pertainin to those securities
using material nonpublic information received for the purposes of a specific transaction for any other purpose than its intended use.

Mosaic Theory

Researching an investment conclusion through perceptive analysis of public information with non-material nonpublic information
This is not a violation of the Standards.

Standards of Professional Conduct - Integrity of Capital Markets
Market Manipulation

Violations include

Any intent to mislead in order to affect security values and trading volumes
Spreading false information
Making trades intended to mislead market participants.

Standards of Professional Conduct - Duties to Clients

Loyalty, Prudence and Care

Recommendations for Members

Follow applicable laws/ rules / regs
Establish client investment objectives
Consider Suitability of the portfolio relative to the client’s needs and circumstances, the investment’s or total portfolio’s characteristics
Diversify
Deal fairly with all clients
Disclose conflicts
Disclose compensation arrangements
Vote proxies in the best interest of clients and ultimate beneficiaries
Maintain confidentiality
Seek best execution

Standards of Professional Conduct - Duties to Clients

Loyalty, Prudence and Care

Violations

Not exercising prudence, care, skill and dilience that a person acting in a like capacity would use.
Manaing pools of lcietns assets not in accordance with governing documents (i.e. trust docs)
Not making investment decisions in the context of the total portfolio
Inform clients of limitations in an advisory relationship (i.e. only recommending their own firms investments)
Not voting proxies in an informed and responsible manner.
Not usin client borkerae or ‘soft dollars’ / ‘soft commission’ for the benefit of the client

Standards of Professional Conduct - Duties to Clients

Fair Dealing

Recommendations for Memebers

Encourage firms to establish compliance procedures requiring proper dissemination of investment recommendations and fair treatment of all customers and clients.
Maintain a list of clients and holdings - used to ensure that all holders are treated fairly

Standards of Professional Conduct - Duties to Clients

Fair Dealing

Recommendations for Firms

Limit the number of people aware of changes to recommendations
Shorten the time frame between decision and dissemination
Publish personnel guidelines for pre-dissemination
- Prohibit personnel who have prior knowledge of a recommendation from discussing it or taking action on it.
Disseminate new/changed recommendations simultaneously to all silents how have expressed an interest for for whom an investment is suitable
Develop written trade allocation procedures
Disclose trade allocation procedures
Establish systematic account reviews
Disclose available levels of service

Standards of Professional Conduct - Duties to Clients

Suitability

Recommendations for Members

For each client, put the needs, circumstances and investment objectives into a written IPS
Consider the type of client and whether there are separate beneficiaries, investor objectives, investor constraints, and performance measuremnt benchmarks
Review the investor’s objectives and constraints periodically to reflect any chanes in client circumstances.

Standards of Professional Conduct - Duties to Clients

Suitability

What should an investment manager do in the event of an unsuitable unsolicited trade request?

The manager should not make the trade until he has discussed with the client the reason it is unsuitable based on the client’s IPS.
If the impact on the overall return / risk profiel is minimal:
- The manager may follow his firm’s poilicy for unsuitable trades.
- The client must acknowlede the discussion and an understanding of why the trade is unsuitable
If the impact on the overall return / risk profiel is material:
- The IPS may be changed with client acceptance
- If the client does not agree to the IPS change, the manager may execute the trade in a separate clint-directed account following firm policy

Standards of Professional Conduct - Duties to Clients

Performance Presentation

Recomomendation to Members

Encourage firms to adhere to Global INvestmetn Performance Standards (GIPS)
Consider the sophistication of the audience
Present the performance of a weihted composite of similiar portoflios rather than the perfoamcne of a single account.
Include terminated accounts as part of historical performance and clearly state when they were terminated
Include all appropriate disclosures to fully explain results
Maintain data and records used to calculate the performance being presented.

Standards of Professional Conduct - Duties to Clients

Performance Presentation

Violations

Misstating performance
Misleading clients or prospects about their investment performance or their firm’s investment performance
Misrepresent past performance or reasonably expected performance
Stating or implying the ability to achieve a rate of return similar to the achieved in the past.
Not making detailed information avaialble upon request or indicating that limited information was made available in a brief presentation.

Standards of Professional Conduct - Duties to Clients

Preservation of Confidentiality

Recommendations for Members

Avoid disclosing information received from a client except to authorize coworkers who are also working for the client.
Follow firm procedures for storage of electronic data and recommend adoption of such procedures if they are not in place

Standards of Professional Conduct - Duties to Employers

Loyalty

Recommendations for Members

Encouraged to give their employer a copy of the code of standards
Best practice is to use separate social media accounts for personal and professional communications

Standards of Professional Conduct - Duties to Employers

Loyalty

Recommendations for Firms

Employers should not have incentive and compensation systems that encourage unethical behavior.

Standards of Professional Conduct - Duties to Employers

Loyalty

Violations

Engaging in activities that may injur their firm, deprive them of profit or the advantage of the employees skill / abilities
Receiving compenstation from someone other than the employer wihtout prior approval
Engaging in the following when leaving an employer prior to their effective resignation:
- misappropriation of trade secrets
- misuse of confidential information
- solicitin employer’s clients prior to leaving
- self-dealing
- misappropriation of client lists
Not adhering to their employer’s policies concerning social media
*

Standards of Professional Conduct - Duties to Employers

Additional Compensation Arrangements

Recommendations for Members

Make an immediate written report to the employer detailing any proposed compensation and services (if additional to employer comp).
Partime members should discuss any arrangements that may compete with their employer’s interest at the time they are hired and abide by employer limitations
*

Standards of Professional Conduct - Duties to Employers

Additional Compensation Arrangements

Recommendations for Firms

Verify details of compensation arrangements with the offering firm.

Standards of Professional Conduct - Duties to Employers

Additional Compensation Arrangements

What consitutes compensation?

Direct and indirect compenstation from a client and or other benefits recevied from third parties

Standards of Professional Conduct - Duties to Employers

Additional Compensation Arrangements

Is the following a gift or compensation?
A client offers a bonus that depends on the future performance of her account.

Additional compensation

Requires advance written consent.

Standards of Professional Conduct - Duties to Employers

Additional Compensation Arrangements

Is the following a gift or compensation?

A client offers a bonus to reward a member for her account’s past performance.

This is a gift
Requires dsclosure to the employer to comly with Standard I(B) Independence and Objectivity

Standards of Professional Conduct - Duties to Employers

Responsibilities of Supervisors

Recommendations for Members

Recommend that his employer adopt a code of ethics.
Should encourage their firm to provide their code of ethics to clients.
Once a compliance program exists, supervisors should:
- Distribute it to the proper personnel
- Update it as needed
- Continually educate staff regarding procedures
- Issue reminders as necessary
- Require professional conduct evaluations
- Review employee actions to monitor compliance and identify violations

Standards of Professional Conduct - Duties to Employers

Responsibilities of Supervisors

Recommendations for Firms

Employers should not commingle compliance procedures with the firm’s code of ethics
While investigating a possible breach it is important to limit the suspected employee’s activities
Adequate compliance procedures should include:
- be clearly written
- be easy to understand
- designate a compliance officer with authority clearly defined
- have a system of checks and balances
- outline the scope fo procedures
- outline what conduct is permitted
- contain procedures for reporting violations and sanctions
- structure incentives so unethical behavior is not rewarded.

Standards of Professional Conduct - Investment Analysis, Recommendations, and Actions

Diligence and Reasonable Basis

Recommendations for Members

Encourage their firms to adopt a policy for periodic review of the quality of third party research
Enourage their firms to adopt the following policies and procedures:
- require research/recommendations have a basis and can be substantiated as reasonable and adequate
- have detailed written guidance for proper research and due diligence
- have measurable criteria for judging the qualify of research , base compensation on that criteria
- have written procedures that provide a minimum acceptable level of scenario testing, standards for range of model accuracy over time and a measure of the sensitivity of cash flows
- Have a policy for evaluating outside providers of info
- Adopt a set of standards for evaluating external advisers and includes a frequency for review.

Standards of Professional Conduct - Investment Analysis, Recommendations, and Actions

Diligence and Reasonable Basis

Examples of critera used to judge third-party research:

Review assumptions used
Determine how rigorous the analysis was
Identify how timely the research is
Evaluate objectivity and independence of the recommendations

Standards of Professional Conduct - Investment Analysis, Recommendations, and Actions

Diligence and Reasonable Basis

Considerations prior to making a recommendation or taking investment action:

Global and national economic conditions
A firm’s financial results and operating history, and the business cycle stage
Fees and historical results for mutual fund
Limitations fo any quantitative models used.
A determination of whether peer group comparisons for evluation are appropriate.

Standards of Professional Conduct - Investment Analysis, Recommendations, and Actions

Communications with Clients and Prospects

Recommendations for Members

Members should maintain records indicating the nature of the research, and be able to supply additional information if it is requested by the clietn or ot.her users of the report

Standards of Professional Conduct - Investment Analysis, Recommendations, and Actions

Records Retention

Recommendations for members

If no regulatory standards or firm policies are in place the Standard recommends a seven-year minimum holding period.

Standards of Professional Conduct - Investment Analysis, Recommendations, and Actions

Records Retention

Recommendations for Firms

The recordkeeping requirements generally is the firm’s responsibility.

Standards of Professional Conduct - Conflicts of Interest

Disclosure of Conflicts

What are common coflicts that must be disclosed?

Broker-dealer market - making activities
Board service
Ownership of stock in the companies that the member recommends or the clients hold.
Members compensation structure
*

Standards of Professional Conduct - Conflicts of Interest

Disclosure of Conflicts

Recommendations for Members

Any special compensation arrangements bonus programs, commissions and incentives must be disclosed.

Standards of Professional Conduct - Conflicts of Interest

Prioritiy of Transactions

Recommendations for Members

Members can avoid conflicts that arise with IPOs by not participating in them
Members should encourage their firms to adopt the recommended procedures for firms.

Standards of Professional Conduct - Conflicts of Interest

Prioritiy of Transactions

Recommendations for Firms

All firms should have basic procedures in place that address conflicts created by personal investing
- limit employee participation in IPOs
- restrict participation in private placements
- establish blackout/restricted periods
- establish reporting procedures including duplicate trade confirms, disclosure of personal holdings and beneficial ownership positions.

Standards of Professional Conduct - Conflicts of Interest

Referral Fees

Recommendations for Members

encourage their firms to adopt clear procedures regarding compensation for referrals
should provide their employers with updates at least quarterly.

Standards of Professional Conduct - Conflicts of Interest

Referral Fees

Recommendations for Firms

Firms that do not prohibit referral fees should have clear procedures for approval and policies regarding the nature and value of referral compensation received.

Standards of Professional Conduct - Responsibilities As A CFA Institute Member/ Candidate

Conduct as Participants in teh CFA Insitute Program

What types of conduct would violate this standard?

Cheating on the CFA exam or any exam
reveal anything about either broad or specific topics tested, content of the exam, questions or required formulas.
Not following rules and policies of the CFA Program
Giving confidential informatino ont eh CFA Program to candidates or public
Improperly usin gthe designation to further personal and professional goals
Misrepresentaitng information on the Professional Conduct Statement (PCS) or the CFA Insitute Professional Development Program

Standards of Professional Conduct - Responsibilities As A CFA Institute Member/ Candidate

Reference to CFA Institute, Teh CFA Designation, and the CFA Program

What must members do to matain membership?

sign the PCS annually
Pay the CFA Insitute membership dues annually

Standards of Professional Conduct - Responsibilities As A CFA Institute Member/ Candidate

Conduct as Participants in teh CFA Insitute Program

Recommendations for Members

Members should be sure that their firms are aware of the proper references to a member’s CFA designation or candidacy, as errors in those references are common.

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Book 1 L 1: Ethics _ GIPS Flashcards

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