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8 Cards in this Set

  • Front
  • Back
Responsibilities to the profession
1. Use the CFA mark in a dignified manner
2. Don't do anything that reflects adversely on the profession.
3. Don't plagarize.
Responsibilities to the employer.
1. Investment process
1a.Reasonable basis and representation
- exercise diligence and thoroughness
- have a reasonable basis for your recommendation
- avoid misrepresentation
- keep appropriate records
1b. Research reports
- use reasonable judgment
- distinguish between fact and opinion
- indicate the basic characteristics of the investment
1c. Maintain independence and objectivity
2. Interaction with clients and prospects
2a. Fiduciary duties
2b. Portfolio investment and recommendations and actions
- know your client
- consider the appropriateness of investment
- distinguish between fact and opinion
- disclose the investment process
2c. Make fair investment recommendations
2d. Preserve client confidentiality
2e. Don't guarantee an investment return
- Don't say you can do what you can't
- Don't lie about your qualifications
- Don't lie about your academic or professional credentials
2f. Disclosure of conflicts to client
2g. Disclosure of referral fees.
A set of portfolios that all follow the same investment style.
Allow firms to elaborate on the raw numbers provided in the presentation and give the end user of the presentation the proper context in which to understand the performance results.
Responsibilities to the investing public
1. Use of material nonpublic information is prohibited.
2. Performance presentation
The Prudent Man Rule
A fiducary shall excerise the judgment and care, under the circumstances then prevailing which men of prudence character and intelligence excerices in the management of their own affairs not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital.
Someone who acts for the benefits of someone else.

The duty required in a fiduciary relationship exceeds that of other business relationships.
Fundamental Responsibilities
1. Don't break or help others break the law.