Ethics Flashcards
Code of ethics related to integrity?
Act with integrity, competence, diligence, respect, and in an ethical manner.
Code of ethics related to client interest?
Place the integrity of the investment profession and clients’ interest above their own personal interests.
Code of ethics related to professional judgment?
Use reasonable care and exercise professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities.
Code of ethics related to practice professionally.
Promote the integrity of, and uphold the rules governing, capital markets.
Code of ethics related to professional competence.
Act competently and strive to improve competence of others.
Practice and encourage others to practice in professional and ethical manner that will reflect credit on themselves and the profession.
Standard of conduct related to professionalism
Knowledge of law
- Apply a stricter rule or law.
Independence and objectivity
- should restrict travel cost arrangements and gifts by third parties.
Misconduct
Standard of conduct related to Integrity of Capital Markets
Material non-public information
- Mosaic theory states that an analyst may use material public and non-material nonpublic information to reach a conclusion that becomes material after the pieces are put together.
Market manipulation
Standard of conduct related to Duties to client and prospective clients
Loyalty and prudence
Fair dealing
Suitability
- The Investment policy statement should take client identification, investor objectives, investor constraints, and performance measurement benchmarks.
Performance presentation
Preservation of confidentality
Standard of conduct related to duties to employers
Loyalty
Additional compensation arrangements
Responsibilities of supervisors.
- Complete record keeping related to actions to prevent or detect code violations.
- Establish and encourage ethical action within a firm.
Standard of conduct related to investment analysis, recommendations, and action.
Diligence and reasonable basis
Communication with clients and prospective clients
Records retention
Standard of conduct related to conflicts of interest.
Disclosure of conflicts
- Disclosure is required to all clients, prospective clients and employers for all actual and potential conflicts.
Priority of transactions.
Referral fees
Standard of conduct related to responsibilities as a CFA institute member or CFA Candidate.
Conduct as participants in CFA institute programs
Reference to CFA Institute, CFA designation, and CFA program.
