Ethics

Question 1

Standards of Professional Conduct

Answer 1

1. Professionalism
   2) Integrity
   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 Candidate

Question 2

Components of Professionalism

Answer 2

1) Knowledge of the Law
2) Independence and Objectivity
3) Misrepresentation
4) Misconduct

Question 3

Components of Integrity of Capital Markets

Answer 3

1) Material Nonpublic Information
2) Market Manipulation

Question 4

Components of Duties to Clients

Answer 4

1) Loyalty, Prudence, and Care
2) Fair Dealing
3) Suitability
4) Performance Presentation
5) Preservation of Confidentiality

Question 5

Components of Duties to Employers

Answer 5

1) Loyalty
2) Additional Compensation Arrangements
3) Responsibilities of Supervisors

Question 6

Components of Investment Analysis, Recommendations, and Actions

Answer 6

1) Diligence and Reasonable Basis
2) Communication with Clients and Prospective Clients
3) Record Retention

Question 7

Code of Ethics

Answer 7

1)
2)
3)
4)
5)
6)

Question 8

Components of Conflicts of Interest

Answer 8

1) Disclosure of Conflicts
2) Priority of Transactions
3) Referral Fees

Question 9

Components of Responsibilities as CFA Member and Candidate

Answer 9

1) Conduct as Participate in Program
2) Reference to CFA Institute, Designation, and Program

Question 10

Code of Ethics

Answer 10

1) Act with integrity, competence, diligence, and respect and in an ethical manner with the public, clients, prospective clients, employers, 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 judgement when conducting investment analysis, making recommendations, taking actions, and engaging in other 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 the professional competence and strive to maintain and improve competence of other investment professionals

Question 11

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