Cfa: Ethics And Professional Standards

Front 1

State the six components of the Code of Ethics.

Back 1

1. Act with integrity, competence, diligence, respect, and in an ethical manner to public, clients, etc.
2. Place the investment profession and clients' interest above their own personal interests.
3. Use reasonable care and exercise independent judgment.
4. Practice, and encourage others to practice, in a professional and ethical manner.
5. Promote the integrity of, and uphold the rules governing, capital markets.
6. Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.

Hint 1

APUPPM
Act in Place, Use sword, Practice sword, Promote act, maintain sword

Front 2

State the seven Standards of Professional Conduct.

Back 2

1. Professionalism: A) Knowledge of the Law, B) Independence and Objectivity, C) Misrepresentation, and D) Misconduct.
2. Integrity of Capital Markets: A) Material Nonpublic Information, and B) Market Manipulation.
3. Duties to Clients: A) Loyalty, Prudence, and Care, B) Fair Dealing, C) Suitability, D) Performance Presentation, and E) Preservation of Confidentiality.
4. Duties to Employers: A) Loyalty, B) Additional Compensation Arrangements, and C) Responsibilities of Supervisors.
5. Investment Analysis, Recommendations, and Actions: A) Diligence and Reasonable Basis, B) Communication with Clients and Prospective Clients, and C) Record Retention.
6. Conflicts of Interest: A) Disclosure of Conflicts, B) Priority of Transactions, and C) Referral Fees.
7. Responsibilities as a CFA Institute member or CFA Candidate:
A) Conduct as Members and Candidates in the CFA Program, and B) Reference to CFA Institute, the CFA designation, and the CFA Program.

Hint 2

"Parties In Denmark Don't Include Coldplay Records"
Professional Investors Don't Disclose Internal Confidential Relationships

Front 3

Knowledge of the Law

Back 3

Knowledge of the Law.
Members must understand and comply with all applicable laws, rules, and regulations (including the Code of Ethics and Standards of Professional Conduct) of any government, regulatory organization, licensing agency, or professional association governing their professional activities. In the event of a conflict, follow the more strict law, rule, or regulation. Do not knowingly participate or assist in violations, and disassociate from any known violation.

Members must know the laws and regulations relating to their professional activities in all countries in which they conduct business.

Members must comply with applicable laws and regulations relating to their professional activity. Do not violate Code or Standards even if the activity is otherwise legal. Always adhere to the most strict rules and requirements (law or CFA Institute Standards) that apply.

Members should disassociate or separate themselves from any ongoing client or employee activity that is illegal or unethical, even if it involves leaving an employer (an extreme case). While a member may confront the involved individual first, he must approach his supervisor or compliance department. Inaction with continued association may be construed as knowing participation.