Ethics Flashcards
What is the primary objective of the Investments & Wealth Institute’s Code of Professional Responsibility?
To promote high standards of professional conduct, integrity, and ethical practices in investment consulting and wealth management, acting in the best interest of clients.
What does Code Principle 1 require of Institute professionals?
Institute professionals must ‘act in the best interest of the client,’ considering all legal, regulatory, and firm requirements.
Under Code Principle 3, what must Institute professionals disclose regarding conflicts of interest?
They must disclose actual, potential, or perceived conflicts of interest and relevant financial relationships, whether direct or indirect, and take steps to manage these conflicts.
What constitutes full compliance with statutory and regulatory requirements for CPWA professionals?
Compliance includes adhering to relevant federal, state, and industry-specific regulations that govern the financial services sector.
How should Institute professionals handle confidential client information?
They must maintain confidentiality in accordance with legal and regulatory requirements, only sharing information when authorized or required by law.
What actions should a professional take if a conflict of interest cannot be avoided?
They must manage the conflict by informing affected clients, seeking their consent, and taking steps to protect client interests.
Describe the role of integrity in the Institute’s Code of Professional Responsibility.
Integrity requires honesty, truthfulness in communication, alignment of actions with words, and accountability in client dealings.
What is required of professionals under Code Principle 2?
Professionals must disclose the scope of services offered, related charges, and any compensation received in a clear and timely manner.
What is the purpose of the IWI Disciplinary Rules and Procedures?
To enforce the Code of Professional Responsibility, protect the integrity of IWI certifications, and outline disciplinary actions for violations.
What guidelines must be followed for using CPWA certification marks in print and online materials?
The marks should be in capital letters, followed by the registration symbol ®, and used only in approved formats as outlined in the Marks Usage Guide.
How does the Code of Professional Responsibility define ‘loyalty’ in client relationships?
Loyalty means prioritizing the client’s needs and objectives as the professional’s fundamental priority.
How should Institute professionals handle clients with diminished capacity?
They must follow legal, regulatory, and firm guidelines to protect the client’s interests and handle communication responsibly.
What is expected from professionals when responding to client inquiries under Code Principle 5?
They must respond promptly, completely, truthfully, and appropriately.
Describe the requirements for maintaining competency under Code Principle 7.
Professionals must represent their competence truthfully, pursue ongoing education, and refer clients to specialists when necessary.
What is considered a ‘relevant financial relationship’ under the Code?
Any financial relationship that may impact impartiality in decisions or recommendations to clients, whether direct or indirect.
What are the consequences of violating the IWI Code of Professional Responsibility?
Violations can lead to disciplinary actions, including censure, suspension, or revocation of certification.
What values are emphasized in the Institute’s Code Preamble?
Integrity, loyalty, objectivity, and ethical conduct are core values that guide professional behavior.
How often must CPWA certificants renew their certification, and what does it include?
Renewal is every two years and includes 40 hours of continuing education, with 2 hours dedicated to ethics.
What steps must be followed for proper conflict management if consent is required?
Obtain informed written consent, follow confidentiality rules, and manage the conflict in the client’s best interest.
How should professionals proceed if they observe unethical behavior in their firm?
They should take steps to address it, including reporting through appropriate channels, aligning with the value of integrity.
