Reading 3: Standards 4-Duties to Employers

Question 1

Standard 4- Duties to Employers

Answer 1

As an investment professional, you have responsibilities to your employer.

Question 2

Standard 4A: Loyalty

Answer 2

In matters related to their employment, members and candidates must act for the benefit of their employer and not deprive the employer of either:

a. ) skills and abilities
b. ) divulge confidential information
c. ) cause harm to the employer

REMEMBER: any employer records on any medium (ex: home computer, tablet, cell phone) are the property of the firm.

Question 3

Standard 4B: Additional Compensation Arrangements

Answer 3

As an investment professional, you must NOT take gifts, benefits, compensation, or consideration that creates conflicts of interest with employer interests.

Question 4

Standard 4C: Responsibilities of Supervisors

Answer 4

So as a supervisor, you have certain responsibilities if you are a CFA holder to your employer:

• make reasonable effort to detect violations
• members with supervisory responsibilities have responsibility to bring up any compliance issues to their management
• if there is a violation, respond promptly and conduct a thorough investigation while increasing supervision/ place limits on the wrongdoer’s activity.