Ethics – Ethics and Code and Standards
Very important to pass de exam is memorize the next topics…
State the six components of the Code of Ethics.
Members of CFA Institute [including Chartered Financial Analyst® (CFA) charterholders] and candidates for the CFA designation (“Members and Candidates”) must:
- § Act with integrity, competence, diligence, respect, and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and other participants in the global capital markets.
- § Place the integrity of the investment profession and the interests of clients above their own personal interests.
- § Use reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities.
- § Practice and encourage others to practice in a professional and ethical manner that will reflect credit on themselves and the profession.
- § Promote the integrity of, and uphold the rules governing, capital markets.
- § Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.
Explain the ethical responsibilities required by the Code and Standards, including the multiple subsections of each Standard.
- I. Professionalism – A) Knowledge of the Law, B) Independence and Objectivity, C) Misrepresentation, and D) Misconduct.
- II. Integrity of Capital Markets – A) Material Nonpublic Information, and B) Market Manipulation.
- III. Duties To Clients – A) Loyalty, Prudence, and Care, B) Fair Dealing, C) Suitability, D) Performance Presentation, and E) Preservation of Confidentiality.
- IV. Duties to Employers - A) Loyalty, B) Additional Compensation Arrangements, and C) Responsibilities of Supervisors.
- V. Investment Analysis, Recommendations, and Actions – A) Diligence and Reasonable Basis, B) Communication with Clients and Prospective Clients, and C) Record Retention.
- VI. Conflicts of Interest – A) Disclosure of Conflicts, B) Priority of Transactions, and C) Referral Fees.
- VII. 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.
Yeah, and Schweser follows the same ethics when they lure you into a seminar and then spring the extra books as mandatory on you when you still haven’t paid the bill for the seminar? Is it ethical that neither AIMR nor Schweser will sell you the material unless you are registered for the exam? What a total fraud of ethics!