Cfa 2 Ethics P

Front 1

SS2
I. PROFESSIONALISM

Back 1

A. Knowledge of the Law
B. Independence and Objectivity
C. Misrepresentation
D. Misconduct

Front 2

SS2
II. INTEGRITY OF CAPITAL MARKETS

Back 2

A. Material Nonpublic Information
B. Market Manipulation

Front 3

SS2
III. DUTIES TO CLIENTS

Back 3

A. Loyalty, Prudence, and Care
B. Fair Dealing
C. Suitability
D. Performance Presentation
E. Preservation of Confidentiality

Front 4

SS2
IV. DUTIES TO EMPLOYERS

Back 4

A. Loyalty.
B. Additional Compensation Arrangements.
C. Responsibilities of Supervisors.

Front 5

SS2
V. INVESTMENT ANALYSIS, RECOMMENDATIONS, AND ACTIONS

Back 5

A. Diligence and Reasonable Basis.
B. Communication with Clients and Prospective Clients.
C. Record Retention.

Front 6

SS2 Standard I
A. Knowledge of the Law

Back 6

Must understand and comply with all applicable laws, rules, and regulations, must comply with the more strict law.

Front 7

SS2 Standard I
B. Independence and Objectivity

Back 7

Must use reasonable care and judgment to achieve and maintain independence and objectivity in their professional activities.

Front 8

SS2 Standard I
C. Misrepresentation

Back 8

Must not knowingly make any misrepresentations relating to investment analysis, recommendations, actions, or other professional activities.

Front 9

SS2 Standard I
D. Misconduct

Back 9

Must not engage in any professional conduct involving dishonesty, fraud, or deceit or commit any act that reflects adversely on their professional reputation, integrity, or competence.

Front 10

SS2 Standard II
A. Material Nonpublic Information

Back 10

Material Nonpublic Information - can' act upon such info.

Front 11

SS2 Standard II
B. Market Manipulation

Back 11

Must not engage in practices that distort prices or artificially inflate trading volume.

Front 12

SS2 Standard III
A. Loyalty, Prudence, and Care

Back 12

1. Must act with reasonable care and exercise prudent
judgment.
2. Must act for the benefit of their clients and place their clients’ interests before their employer’s or their own interests.

Front 13

SS2 Standard III
B. Fair Dealing

Back 13

Must deal fairly and objectively with all clients when providing investment analysis, making investment
recommendations, taking investment action, or engaging in other professional activities.

Front 14

SS2 Standard III
C. Suitability

Back 14

Advisory Relationship:
1. Make a reasonable inquiry of investment experience, risk and return objectives, and financial constraints prior to making any investment recommendation.
2. Determine that an investment is suitable. Consistent with the client’s written objectives, mandates, and constraints.
3. Judge the suitability of investments in the context of the client’s total portfolio.
Managing portfolio: must make only investment
recommendations or take investment actions that are consistent with the stated objectives and constraints of the portfolio.

Front 15

SS2 Standard III
D. Performance Presentation

Back 15

When communicating - must make reasonable efforts to ensure that it is fair, accurate, and complete.

Front 16

SS2 Standard III
E. Preservation of Confidentiality

Back 16

Must keep information about current, former, and prospective clients confidential unless:
1. The information concerns illegal activities on the part of the client or prospective client,
2. Disclosure is required by law, or
3. The client or prospective client permits disclosure of the information.

Front 17

SS2 IV. DUTIES TO EMPLOYERS
A. Loyalty.

Back 17

Must act for the benefit of their employer and not deprive their employer of the advantage of their skills and abilities, divulge confidential information, or
otherwise cause harm to their employer.

Front 18

SS2 IV. DUTIES TO EMPLOYERS
B. Additional Compensation Arrangements.

Back 18

Must not accept gifts, benefits, compensation, or consideration that competes with, or might reasonably be expected to create a conflict of interest with, employer’s interest unless they obtain written consent from all parties involved.

Front 19

SS2 IV. DUTIES TO EMPLOYERS
C. Responsibilities of Supervisors.

Back 19

Must make reasonable efforts to detect and prevent violations of applicable laws, rules, regulations, and the Code and Standards by anyone subject to their supervision or authority.

Front 20

SS2 V. INVESTMENT ANALYSIS, RECOMMENDATIONS, AND ACTIONS
A. Diligence and Reasonable Basis.

Back 20

1. Exercise diligence, independence, and thoroughness in analyzing investments, making investment recommendations, and taking investment actions.
2. Have a reasonable and adequate basis, supported by appropriate research and investigation, for any investment analysis, recommendation, or action.

Front 21

SS2 V. INVESTMENT ANALYSIS, RECOMMENDATIONS, AND ACTIONS
B. Communication with Clients and Prospective Clients.

Back 21

1. Disclose to clients and prospective clients the basic format and general principles of the investment processes. Must promptly disclose any changes that might materially affect those processes.
2. Use reasonable judgment in identifying which factors are important to their investment analyses, recommendations, or actions and include those factors in communications with clients and prospective clients.
3. Distinguish between fact and opinion in the presentation of investment
analysis and recommendations.

Front 22

SS2 V. INVESTMENT ANALYSIS, RECOMMENDATIONS, AND ACTIONS
C. Record Retention.

Back 22

Must develop and maintain appropriate records to support their investment analysis, recommendations,
actions, and other investment-related communications with clients and prospective clients.

Front 23

SS2 VI. CONFLICTS OF INTEREST

Back 23

A. Disclosure of Conflicts.
B. Priority of Transactions.
C. Referral Fees.

Front 24

SS2 VI. CONFLICTS OF INTEREST
A. Disclosure of Conflicts.

Back 24

1. Must make full and fair disclosure of all matters that could reasonably be expected to impair their
independence and objectivity or interfere with respective duties to their clients, prospective clients, and employer.
2. Must ensure that such disclosures are prominent, are delivered in plain language, and communicate the relevant information effectively.

Front 25

SS2 VI. CONFLICTS OF INTEREST
B. Priority of Transactions.

Back 25

Investment transactions for clients and employers
must have priority over investment transactions in which a Member or Candidate is the beneficial owner.

Front 26

SS2 VI. CONFLICTS OF INTEREST
C. Referral Fees.

Back 26

Must disclose to their employer, clients, and prospective clients, as appropriate, any compensation,
consideration, or benefit received by, or paid to, others for the recommendation of products or services.

Front 27

SS2 VII. RESPONSIBILITIES AS A CFA INSTITUTE MEMBER OR CFA CANDIDATE

Back 27

A. Conduct as Members and Candidates in the CFA Program.
B. Reference to CFA Institute, the CFA Designation, and the CFA Program.

Front 28

SS2 VII. RESPONSIBILITIES AS A CFA INSTITUTE MEMBER OR CFA CANDIDATE

Back 28

Must not engage in any conduct that compromises the reputation or integrity of CFA Institute or the CFA designation or the integrity, validity, or security of the CFA examinations.

Front 29

SS2 VII. RESPONSIBILITIES AS A CFA INSTITUTE MEMBER OR CFA CANDIDATE

Back 29

When referring to CFA Institute, CFA Institute membership, the CFA designation, or candidacy in the CFA Program, Members and Candidates must not misrepresent or exaggerate the meaning or implications of membership in CFA Institute, holding the CFA designation, or candidacy in the CFA Program.