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The Code of Ethics does NOT explicitly say that a CFA Institute member shall do which of the following?

A) Act with integrity.

B) Actively lobby for new laws to protect the public.

C) Reflect credit on the profession.

D) Exercise independent professional judgment.

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According to the Code of Ethics, when practicing in a professional and ethical manner the goal is to:

A) increase membership in CFA Institute.

B) resolve conflicts between clients and employers.

C) reflect credit on members and the profession.

D) resolve conflicts between fellow employees and the employer.

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The first component of the Code of Ethics does NOT explicitly say that a CFA Institute member will act in a certain manner with respect to which of the following groups?

A) The public.

B) The SEC.

C) The member's employer.

D) Colleagues in the investment profession.

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Which of the following is least likely a component of the Code of Ethics? In dealing with the public, clients, prospects, employers, employees, and fellow members, CFA Institute members shall act with:

A) humility.

B) respect.

C) integrity.

D) competence.

cfaedu

The Code of Ethics does NOT explicitly say that a CFA Institute member shall do which of the following?

A) Act with integrity.

B) Reflect credit on the profession.

C) Actively lobby for new laws to protect the public.

D) Exercise independent professional judgment.

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John Elliot, CFA, says that in issues of ethics he always puts the clients first according to the guidelines in the Code of Ethics. In doing so he is:

A) not correct because no such ordering or priority is given in the Code.

B) not correct because his first duty is to the public.

C) not correct because his first duty is to his employer as long as the employer is enforcing the Standards.

D) correct.

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Which of the following is NOT part of the CFA Institute Code of Ethics. Members of CFA Institute will:

A) use reasonable care and exercise independent professional judgment.

B) strive to maintain and improve their competence and the competence of others in the profession.

C) practice and encourage others to practice in a professional and ethical manner that will reflect credit on members and their profession.

D) recommend investments that maximize returns for a given level of risk.

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Answer and Explanation

Standard of Professional Conduct III(C), not the Code of Ethics, requires that investments be appropriate and suitable.

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All of the following are components of the Code of Ethics EXCEPT:

A) striving to maintain and improve their competence and the competence of others in the profession.

B) acting with integrity, competence, respect, and in an ethical manner when dealing with others.

C) using reasonable care and exercising independent professional judgment.

D) demonstrating diligence, independence, and thoroughness when preparing investment reports.

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Answer and Explanation

Demonstrating diligence, independence, and thoroughness when preparing investment reports is found in the Standards of Professional Conduct.

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In dealing with the public and others, the CFA Institute Code of Ethics indicates that CFA Institute members will act with:

A) integrity, competence, and respect.

B) honesty, professionalism, and goodwill.

C) conviction, skill, and ethical awareness.

D) confidence, knowledge, and high ethical standards.

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Answer and Explanation

Integrity, competence, and respect are included in the first component of the Code of Ethics.

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Which of the following is NOT an act explicitly referred to in the Code of Ethics?

A) Improve professional competence.

B) Giving free introductory seminars on investing to the public.

C) Using reasonable care when making investment recommendations.

D) Acting with integrity, competence, and diligence.

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Answer and Explanation

Although the Code says a member has obligations to the public, educating the general public for whatever reason is not implied.