ikoreaii

Which of the following activities would be following a component of the Code of Ethics explicitly?

A) Consulting with colleagues about opinions you reach in your research.

B) Maintaining a list of colleagues who have violated the CFA Institute standards.

C) Attending continuing education seminars on investing and inviting colleagues to come along.

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The Code states that a member shall “Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.” None of the other answers qualify.

ikoreaii

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) integrity.

B) respect.

C) humility.

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Although acting with humility may be desirable, CFA Institute members are not required to do so. However, they should act in a manner that reflects credit on themselves and their profession.

ikoreaii

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) Colleagues in the investment profession.

B) The SEC.

C) The public.

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The SEC is not mentioned in the Code of Ethics. Component one mentions duties to the public, clients, prospects, employers, employees, colleagues, and other participants in the global capital markets.

ikoreaii

The CFA Institute Code of Ethics least likely requires a Member or Candidate to:

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

B) Understand and comply with all applicable laws, rules, and regulations.

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

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Understanding and complying with all applicable laws, rules, and regulations is required by Standard I(A) – Knowledge of the Law. The other choices are included in the Code of Ethics.

ikoreaii

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) confidence, knowledge, and high ethical standards.

C) honesty, professionalism, and goodwill.

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

ikoreaii

Which of the following is a component of the Code of Ethics? CFA Institute members shall:

A) act for the benefit of their clients and place their clients' interests before their own.

B) disclose to their employer all matters that reasonably could be expected to interfere with their duty to their employer or ability to make unbiased and objective recommendations.

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

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Striving to maintain and improve their competence and the competence of others in the profession is one of the components of the Code of Ethics, whereas the other statements are part of the Standards of Professional Conduct.

ikoreaii

Which of the following is a component of the Code of Ethics?

A) Members and candidates shall not engage in any conduct or commit any act that compromises the integrity of the CFA designation or the integrity or validity of the examinations leading to the award of the right to use the CFA designation.

B) Members shall not copy or use, in substantially the same form as the original, material prepared by another without acknowledging and identifying the name of the author, publisher, or source of such material. Members may use, without acknowledgment, factual information published by recognized financial and statistical reporting services or similar sources.

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

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This is a component of the Code of Ethics. Others pertain to the Standards of Practice.

ikoreaii

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

A) Reflect credit on the profession.

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

C) Act with integrity.

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The Code of Ethics says nothing about a CFA Institute member lobbying for new laws. In fact, legal issues are not a part of the Code. The Standards of Professional Conduct say that the member shall obey laws.

ikoreaii

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

A) reflect credit on members and the profession.

B) increase membership in CFA Institute.

C) resolve conflicts between clients and employers.

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The Code states that a member shall “Practice and encourage others to practice in a professional and ethical manner that will reflect credit on members and their profession.”

ikoreaii

Which of the following is NOT part of the CFA Institute Code of Ethics?

A) Independent judgment.

B) Competence.

C) Contractual provisions.

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Contractual provisions are not part of the Code of Ethics.