Ethics Flashcards
What is ethics?
It is set of shared beleifs about what is good and what is bad
What is code of ethics?
It is written set of moral principles that can guide behaviour by considering what is acceptable behaviour
Hoe code of ethics is used by the proffesionals?
It is eay to communicate to public that they will act in ethical manner
What is profession?
It is occupational group that has requirements of specialized expert knowledge and focus on ethical behavioural and service to larger community or society
What is suitability standard?
It is match between return requirement, risk tolerance and characteristics of securities recommended
What is fiduciary standard?
It is use of knowledge and expertise to act in best interest of the client
What are ethical decision making framework steps?
Identify, consider, decide and act and reflect
What are standard of professional conduct?
Professionalism
Integrity of capital markets
Duties to clients
Duties to employers
Investment analysis, remommendation and actions
Conflicts of interest
Responsibilities as a CFA institute memeber of CFA candidate
What fall under professionalism? (4)
Knowledge of law
Independent and objectivity
Misrepresentation
Misconduct
What falls under integrity of capital markets? (2)
Material nonpublic information, market manipulation
What falls under duties to clients? (5)
Loyalty, prudence and care
Fair dealing
Suitability
Performance presentation
Preservation of confidentiality
What falls under duties to employers? (3)
Loyalty
Additional compensation arrangements
Responsibilities of supervisors
What falls under investment analysis, recommendation and actions? (3)
Diligence and reasonable bias
Communication with clients and prospective clients
Record retention
What falls under conflicts of interest? (3)
Disclosure of conflicts
Priority of transactions
Refferal fees
