Standards of Conduct and Code of Ethics Flashcards
1
Q
Duty of Care
A
Care, Skill, Prudence, and Dilligence
2
Q
Duty of Loyalty
A
Interest above own, avoid disclosures of interest
3
Q
Duty to Follow Client Instructions
A
- follow all reasonable and lawful directions of clients
- must comply with objective, policies, restrictions, and other terms of engagement
4
Q
Integrity
A
- honesty and candor
- cannot be for personal gain or advantage
- may NOT = device, scheme or attempt to defraud, engage in act that would operate as fraud or deceit, or make untrue statements or facts
5
Q
Diligence
A
- provide professional services
- responding in a timely and thorough manner
6
Q
Professionalism
A
- dignity courtesy and respect
7
Q
Disclose of Conflicts
A
- must make full disclosure
- specific and reasonable that client understands
- ambiguity is always in favor of client
- written consent NOT required
- sincere belief of acting in best interest is insufficient for excuse of not disclosing
8
Q
Competence
A
- relevant knowledge and skill to apply
- refer out if don’t have
9
Q
Manage Conflicts
A
- must adopt business practices designed to prevent material conflicts of interest
10
Q
Sound and Objective Professional Judgment
A
- must exercise professional judgment on behalf of clients
- cannot accept any form of gift or other consideration expected to compromises professional objectives
11
Q
You own Policy on Spouse and YOU die
A
- replacement cost (no 3 year rule)
- term = unused premiums
- whole life = terminal reserves plus unearned premiums
