Standards of Professional Conduct

Question 1

I. PROFESSIONALISM

Answer 1

A. Knowledge of the Law

B. Independence and Objectivity

C. Misrepresentation

D. Misconduct

Question 2

II. INTEGRITY OF CAPITAL MARKETS

Answer 2

A. Material Nonpublic Information

B. Market Manipulation

Question 3

III. DUTIES TO CLIENTS

Answer 3

A. Loyalty, Prudence and Care

B. Fair Dealing

C. Suitability

D. Performance Presentation

E. Preservation of Confidentiality

Question 4

IV. DUTIES TO EMPLOYERS

Answer 4

A. Loyalty

B. Additional Compensation Arrangements

C. Responsibilities of Supervisors

Question 5

V. INVESTMENT ANALYSIS, RECOMMENDATIONS AND ACTIONS

Answer 5

A. Diligence and Reasonable Basis

B. Communication with Clients and Prospective Clients

C. Record Retention

Question 6

VI. CONFLICTS OF INTEREST

Answer 6

A. Disclosure of Conflicts

B. Priority of Transactions

C. Referral Fees

Question 7

VII. RESPONSIBILITIES AS A CFA INSTITUTE MEMBER OR CFA CANDIDATE

Answer 7

A. Conduct as Participants in CFA Institute Programs

B. Reference to CFA Institute, the CFA Designation, and the CFA Program

Question 8

The 7 Standards of Professional Conduct

Answer 8

I. Professionalism
II. Integrity of Capital Markets
III. Duties to Clients
IV. Duties to Employers
V. Investment Analysis, Recommendations and Actions
VI. Conflicts of Interest
VII. Responsibilities as a CFA Institute Member or CFA Candidate