CFA Ethics - Standard VI (brief)

Question 1

What is Standard VI called?

Answer 1

Conflicts of Interest

Question 2

What is Standard VI A called?

Answer 2

Conflicts of Interest: Disclosure of Conflicts

Question 3

What must members and candidates do according to Standard VI A?

Answer 3

Members and Candidates must:
 make FULL and FAIR
D I S C L O S U R E
 of ALL matters 
that could REASONABLY be expected to IMPAIR their INDEPENDENCE and OBJECTIVITY or INTERFERE with respective DUTIES to:
- clients
- prospective clients
- and employer.

Question 4

How should members and candidate undertake to perform Standard VI A?

Answer 4

Members and Candidates must ensure that such disclosures are PROMINENT, are delivered in PLAIN LANGUAGE, and COMMUNICATE the RELEVANT information EFFECTIVELY

Question 5

What is Standard VI B called?

Answer 5

Conflicts of Interest: Priority of Transactions

Question 6

What must members and candidates do according to Standard VI B?

Answer 6

Investment transactions for CLIENTS and EMPLOYERS must have PRIORITY over the investment transactions in which a MEMBER or candidate is the BENEFICIAL owner.

i.e. the client’s and their employer’s investment transactions have priority over all the member/candidate’s investment transactions

Question 7

What is Standard VI C called?

Answer 7

Conflicts of Interest: Referral fees

Question 8

What must members and candidates do according to Standard VI C?

Answer 8

M/C must disclose to:
- employer
- client/prospective client
ANY:
- compensation
- consideration
- or benefit
RECEIVED from or PAID to others for the RECOMMENDATION of PRODUCTS/SERVICES