CFA Ethics - Standard V (brief)

Question 1

What is the title of ethics Standard V?

Answer 1

Investment analysis, recommendations and actions

Question 2

What is the subtitle of ethics Standard V A?

Answer 2

Diligence and Reasonable Basis

Question 3

What must M/C exercise to Standard V A1?

Answer 3

1. Exercise
   - diligence
   - independence
   - thoroughness
   in ANALYZING investments, making investment RECOMMENDATIONS, and taking invest ACTIONS

Question 4

According to Standard V A2, on what basis must this be done?

Answer 4

2. Have a REASONABLE and ADEQUATE basis, supported by appropriate RESEARCH and INVESTIGATION, for any investment ANALYSIS, RECOMMENDATION or ACTION

Question 5

What is the subtitle of ethics Standard V B?

Answer 5

Communication with Clients and Prospective Clients

Question 6

In terms of Standard V B, what must M/C disclose to Clients/Prospective clients w.r.t. methodology of the investment process?

Answer 6

Disclose:
- basic format
- general principles
of the investment processes used
AND
- any material changes made

Question 7

In terms of Standard V B, what must M/C disclose to Clients/Prospective clients w.r.t. to the reliability of the investment processes undertaken?

Answer 7

Disclose any SIGNIFICANT LIMITATIONS and RISKS associated with the investment process

Question 8

How should M/C perform Standard V B

Answer 8

With reasonable judgement in indentifying the important characteristics to the investment process

Question 9

When presenting investment analyses and recommendations, according the Standard V B, what should M/C distinguish between?

Answer 9

The must distinguish between FACT or OPINION

Question 10

What is the subtitle of Standard V C?

Answer 10

Record Retention

Question 11

What must M/C do w.r.t. Standard V C?

Answer 11

Must DEVELOP and MAINTAIN appropriate records to support their investment analyses, recommendations, actions, and other investment-related communications with clients and prospective clients