Ethics (11.17.24)

Question 1

7 Standards

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

Standard Subsections: Professional

Answer 2

A. Independence and Objectivity
B. Misrepresentation
C. Misconduct
D. Competence

Question 3

Standard Subsections: Integrity of Capital Markets

Answer 3

A. Market Manipulation
B. Duties to Clients

Question 4

Standard Subsections: Duties to Clients

Answer 4

A. Fair Dealing
B. Suitability
C. Performance Presentation
D. Preservation of Confidentiality

Question 5

Standard Subsections: Duties to Employers

Answer 5

A. Additional Compensation Arrangements
B. Responsibilities of Supervisors

Question 6

Standard Subsections: Investment Analysis, Recommendations, and Actions

Answer 6

A. Communication with Clients and Prospective Clients
B. Record Retention

Question 7

Standard Subsections: Conflicts of Interest

Answer 7

A. Priority of Transactions
B. Referral Fees

Question 8

Standard Subsections: Responsibilities as a CFA Institute Member or CFA Candidate

Answer 8

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

Question 9

Code of Ethics

Answer 9

1) Act with integrity, competence, diligence, and 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

2) Place the integrity of the investment profession and the interests of clients above their own personal interests

3) Use reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities

4) Practice and encourage others to practice in a professional and ethical manner that will reflect credit on themselves and the profession

5) Promote the integrity and viability of the global capital markets for the ultimate benefit of society

6) Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals

Question 10

Asset Manager code of Professional Conduct Points

Answer 10

1) Loyalty to Clients
2) Investment Process and Actions
3) Trading
4) Risk Management, Compliance, and Support
5) Performance and Valuation
6) Disclosures

Question 11

after how long can terminated accounts be removed from performance history

Answer 11

no timeline, they always have to be a part of reporting

Question 12

how often should reviews be conducted with clients

Answer 12

at least annually

Question 13

how often should client information be communicated to them (statements, etc.)

Answer 13

quarterly

Question 14

can you charge a company to issue research on them

Answer 14

yes, but you have to disclose it

Question 15

record retention policy

Answer 15

for five years, either digitally or hard copy, doesnt matter

Question 16

if someone tries to hire a pm but doesn’t do it, do they have to disclose that relationship when recommending that person

Answer 16

yes

Question 17

when an issue is oversubscribed what this the proper behavior

Answer 17

allocations cannot be made where members and candidates have beneficial interest, like family members

Question 18

according to asset manager code, can the compliance department review portfolio information sent to clients

Answer 18

no, it must be review by an independent third party