Lecture 3 Flashcards
What is Standard 1 for the CFA Standards of Practice
Professionalism
What is Standard 1(A)?
Knowledge of the Law
What is IFIC
Investment Funds Institute of Canada
What is MFDA
Mutual Funds Dealer Association
What is IIROC
Investment Industry Regulatory Organization of Canada
What act deals with privacy?
PIPEDA
What act deals with insider trading?
Criminal code
What act deals with shareholders rights?
Canadian Business Act
What act deals with money laundering?
Terrorist Financing Act
What act deals with M&A
Income Tax Act, Competition Act and Investment Canada Act
What did IIROC and MFDA merge into?
CIRO –> Canadian Investment Regulatory Organization
What does Knowledge of the Law mean?
Stay informed and up to date and review company procedures
What is Standard 1(B)?
Independence and Objectivity
What does independence and objectivity mean?
Independence is the freedom from conditions that threaten the ability of an analyst to do their job
Objectivity is unbiased mental attitude that an analyst has
What is Standard 1(C)?
Misrepresentation
What does misrepresentation mean?
Act of dishonesty which results in a loss of integrity
What is Standard 1(D)?
Misconduct
What is misconduct?
Engaging in any conduct involving dishonesty, fraud, or deceit
What is GIPS?
Global Investment Performance Standards
Window Dressing
Mutual funds investing in stocks that have done well during the end of the quarter so managers pick “winners”
Style Drift
Managers picking securities that move away from the original investment style/strategy
Style Boxes
Allows equity investors to capture a size and value growth continuum for equity investments
Cherry-pick
Selection process that selects the best accounts in creating the fund’s composite performance
Leverage
Borrowing cash to increase portfolio
