Ethics Flashcards
What is the Institute’s Mission?
To deliver premier investment consulting and wealth management credentials and world-class education
The purpose of the institute is
A. Broaden public understanding of investment consulting and wealth management
B. Improve the professionalism of its certificants and members through educational and certification programs
C. Develop and encourage the practice of high standards of professional conduct
D. Promote and protect the interests of the profession and the public it serves
Values of the Institute
- Integrity
- Loyalty
- Objectivity
- Ethical Conduct
The principles of the Code of Professional Responsibility
- Act in the best interest of the client
- Disclose services to be offered and provided, related charges, and compensation
- Disclose the existence of actual, potential, and/or perceived conflicts of interest and relevant financial relationships, direct and/or indirect. Take appropriate action to resolve or manage any such conflicts
- Provide clients information needed to make informed decisions
- Respond to client inquiries and instructions appropriately, promptly, completely, and truthfully
- Maintain confidentiality of client information, however acquired, consistent with legal and regulatory requirements and firm policies
- Provide competent service by truthful representation of competency, maintenance and/or development of professional capabilities, and, when appropriate, the recommendation of other professionals
- Comply with legal and regulatory requirements related to one’s practice of his or her profession
- Maintain a high level of ethical conduct
Basic Rules for Using the Institute’s Certification Marks
- Always use short form certification mark in all capital letters with no other punctuation
- Always use the registration symbol at the end of all the certification marks
- Always use the certification marks as adjectives qualifying and the approved nouns describing your services
What is the Professional Review Board comprised of
- At least six licensees in good standing who have held an Institute Designation for at least two years
- One member will serve as chair
- Members are nominated by the Institute President and ratified by the Board of Directors
- They will serve a three year term on a staggered basis
Powers and Duties of the PRB
- Investigate alleged infractions of the Code, Rules, and/or other standards adopted by the Institute and issue orders regarding private or public censure, suspension or termination of the right to use an Institute Designation by Licensees, or termination of Candidates who are found to have violated the Code, Rules, or other standards adopted by the Institute, or other orders as may be appropriate
- Report to the Institute Board with respect to the operations of the PRB
- Consider and propose amendments to the Code, Rules, and/or standards adopted by the Institute Board or Certification Commission
- Develop and adopt procedures for the fair and expeditious hearing of matters that come before it
Responsibilities of the Institute Staff
- Receiving and maintaining confidentiality of complaints and other information received by the Institute from clients or other parties with respect to Licensees’ alleged violations of the Code, Rules, and/or other standards adopted by the Institute
- Providing periodic summaries to the PRB of all such complaints
- Conducting investigations of complaints at the direction of the PRB
- Preparing and submitting disciplinary petitions and recommendations to the PRB after review by Legal Counsel
- Preparing and submitting disciplinary recommendations by a Hearing Panel to the PRB
- Preparing draft orders for review and approval by a Hearing Panel, the PRB, the Institute Appeals Board, and/or any member of any of the aforementioned bodies
- Obtaining all necessary confidentiality and/or conflict of interest agreements by members of the PRB, the Institute Appeals Board, and/or Hearing Panel members
Grounds for Discipline
- Violation of the Code, Rules, and/or standards adopted by the Institute
- Violation of federal or state statutes or regulations or rules of self-regulating bodies in respect to the financial services industry
- Violation of the criminal statutes of any state or the United States for commission of a Serious Crime. Conviction of a crime shall not be a prerequisite for the filing of a disciplinary petition
- Any act or omission that results in a Professional Loss or Suspension and/or the suspension or termination of a professional license, designation, or certification by a local, state, federal, or private licensing, designation or certification authority or organization
- Violation of the rules of FINRA or other financial services self-regulatory organization
- Failure to respond to a disciplinary petition or a request of the Hearing Panel, PRB, the Institute Appeals Board, and/or the Institute staff or failure to comply with an order of a Hearing Panel, the PRB, and/or the Institute Appeals Board
- The submission of false or misleading statements to the Institute, a Hearing Panel, the PRB, and/or the Institute Appeals Board
- Violation of the License Agreement between the Institute and the Licensee
How many days the the Institute staff have to research a complaint received in writing?
60 days
How many days will Legal Counsel have to review the petition and determine if it should forward the petition to PRB?
60 days
How many days does the PRB have to make its determination of a petition?
60 days
How long does a CPWA designee have to answer a disciplinary petition or other disciplinary document?
No later than 30 days after the mailing date of the disciplinary petition to the Respondant
What actions does the PRB have discretion to take in regard to disciplinary action
- Private censure
- Public censure
- Suspension of the right to use the Institute Designation for a specific period of time
- Termination of the right to use the Institute Designation
- Other action determined to be appropriate to remedy the conduct
What does the Professional Review Board do?
Reviews, investigates, and rules on violations of the Code
