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25 Cards in this Set
- Front
- Back
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P.I.D.D.I.C.R
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I. Professionalism
II. Integrity of Capital Markets III. Duties to Clients IV: Duties to Employer V: Investment Analysis VI: Conflict of Interest VII. Responsibilities as CFA Institute Member |
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PROFESSIONALISM
A. KNOWLEDGE OF THE LAW |
In the event of conflict, Members and Candidates must comply with the more strict law, rule, or regulation
Must disassociate themselves from any violation of law |
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PROFESSIONALISM
B. INDEPENDENCE AND OBJECTIVITY |
Candidates must not offer, solicit or accept any gift that could be expected to compromise their own independence and objectivity
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PROFESSIONALISM
C. MISREPRESENTATION |
Candidates must not knowingly make any misrep relating to investment analysis
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PROFESSIONALISM
D. MISCONDUCT |
Candidates must not engage in any professional conduct involving dishonesty, fraud
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INTEGRITY OF CAPITAL MARKETS
A. MATERIAL NONPUBLIC INFORMATION |
Members must not act of cause others to act on nonpublic information
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INTEGRITY OF CAPITAL MARKETS
B. MARKET MANIPULATION |
Members must not engage in practices that distort prices or trading volume with the intent to mislead market participant
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DUTIES TO CLIENT
A. LOYALTY, PRUDENCE AND CARE |
Members must act and place their client's interest before their employer's or their own interest
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DUTIES TO CLIENT
B. FAIR DEALING |
Members must deal fairly when providing investment analysis
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DUTIES TO CLIENT
C. SUITABILITY |
A) Inquire client investment experience, risk and return objectives, and financial constraint
B) Suitable to client's financial situation C) Judge by client's total portfolio |
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DUTIES TO CLIENT
D. PERFORMANCE PRESENTATION |
Members must make reasonable efforts to ensure is fair, accurate and complete
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DUTIES TO CLIENT
E. PRESERVATION OF CONFIDENTIALITY |
Members must keep information about client unless:
1) illegal activities 2) required by law 3) Client permits to disclose |
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DUTIES TO EMPLOYER
A. LOYALTY |
Members must act for the benefit of their employer
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DUTIES TO EMPLOYER
B. ADDITIONAL COMPENSATION ARRANGEMENTS |
Members must not accept gifts that expected to create conflict of interest with employers
Unless obtain written consent from all parties involved |
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DUTIES TO EMPLOYER
C. RESPONSIBILITIES OF SUPERVISORS |
Members must make reasonable efforts to detect and prevent violations by anyone subject to their supervision
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INVESTMENT ANALYSIS
A. DILIGENCE AND REASONABLE BASIS |
Diligence, independence, and thoroughness
Appropriate research and investigation |
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INVESTMENT ANALYSIS
B. COMMUNICATION WITH CLIENT |
Disclose to client the basic format of the investment process
Identify which factors are important to their investment analyses Distinguish between fact and opinion |
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INVESTMENT ANALYSIS
C. RECORD RETENTION |
Members must develop and maintain appropriate record to support their investment analysis
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CONFLICT OF INTEREST
A. DISCLOSURE OF CONFLICTS |
Members must make full and fair disclosure of all matters
Disclosure must be prominent, delivered in plain language and communicate the relevant information effectively |
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CONFLICT OF INTEREST
B. PRIORITY OF TRANSACTION |
Clients must have priority over investment transaction
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CONFLICT OF INTEREST
C. REFERRAL FEES |
Candidates must disclose to their employer, clients, and prospective clients for the recommendation of products
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RESPONSIBILITIES AS A CFA
A. CONDUCT AS MEMBERS |
Member must not engage in any conduct that compromises the reputation of CFA Institute
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RESPONSIBILITY AS A CFA
B. REFERENCE TO CFA INSTITUE |
Must not misrepresent or exaggerate the meaning of membership
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RECOMMENDATION FOR COMPLIANCE (MEMBERS)
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Members should have procedures to keep up with changes
Members should document any violation No requirement to report violations to government Strongly encourage to report other members' violations |
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RECOMMENDATION FOR COMPLIANCE (FIRMS)
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Members should encourage their firms to:
Develop or adopt code of ethics Make laws and regulation information available to employees Establish written procedures for reporting suspect violation of law |
