Ethics

Question 1

What are the components of Standard-7?

Answer 1

Responsibility as CFA Institute member or CFA Candidate.
a) Conduct as participants in CFA Institute programs
b) Reference to CFA Institute, Designation or CFA Program

Question 2

Are the words ‘improvised skills’ allowed to be written in CFA bio?

Answer 2

Yes
But exaggeration is not allowed.

Question 3

Are the words ‘obtained highest set of credential’ allowed to be written in CFA bio?

Answer 3

Yes

Question 4

Are the words ‘As a CFA charter holder’ allowed to be written in CFA bio?

Answer 4

No

Question 5

What are the components of Standard-2?

Answer 5

Integrity of capital markets
a) Material non public information
b) Market Manipulation

Question 6

What is mosaic thoery?

Answer 6

It is allowed, it is non material non public info + material public info

Question 7

If firm discloses its agreement with member to boost transactions over initial launch, liquidity pumping strategy. Is it allowed?

Answer 7

Yes

Question 8

Working on rumour after disclosure is a violation?

Answer 8

No

Question 9

What are the components of Standard-1?

Answer 9

Professionalism
a) Knowledge of law
b) Misconduct
c) Misrepresentation
d) Independence

Question 10

Which type of fees is recommended-
a) Issuer pay
b) Flat fee

Answer 10

Flat fee.

Question 11

Is it necessary to credit the source of information, table, stats if obtained from recognised financial and statistical reporting services?

Answer 11

No

Question 12

True or False
Personal Bankruptcy is misconduct but not professional misconduct.

Answer 12

True

Question 13

What are the components of Standard-3?

Answer 13

Duty towards your client
a) Loyalty, Prudence and care
b) Fair dealing
c) Suitability
d) Performance presentation
e) Confidentiality preservation

Question 14

Should the member include terminated accounts as part of historical performance?

Answer 14

Yes, and state why tey were terminated.

Question 15

What are the components of Standard-4?

Answer 15

Duties towards employer-
a) Additional Compensation Arrangements
b) Loyalty
c) Responsibility of Supervisor

Question 16

Should the member take prior approval and disclosure to start a new business that is unrelated and work outside working hours?

Answer 16

Only disclosure is required

Question 17

Soliciting employer clients from data gathered during course of a job is a violation?

Answer 17

Yes,
However, employer can solicit client from former employer through memory or publicly available data.

Question 18

Is creating a list of work done at previous organisation a violation?

Answer 18

No

Question 19

What are the components of Standard-5?

Answer 19

Investment Analysis, recommendation and actions-
a) Diligence and Reasonable basis
b) Communication with client and prospective client
c) Record retention

Question 20

True or False
Quick and simple means member was not diligent.

Answer 20

False, It does not.

Question 21

Expectations bases on statistical analysis are facts?

Answer 21

No

Question 22

For how many minimum years should company keep records?

Answer 22

7

Question 23

Can a member use record obtained from previous employer at new firm?

Answer 23

No, because supporting is unavailable.
Further, for future use, he can recreate the records at new firm with information gathered through public sources or directly but not from memory or sourced obtained from previous employer.

Question 24

What are the components of Standard-6?

Answer 24

Conflicts of Interest-
a) Referral Fees
b) Disclosure of conflicts
c) Priority of Transactions

Question 25

If a member did not disclose the referral fees but still refused the payment, is it a violation?

Answer 25

No