mouse123

The first component of the Code of Ethics does NOT explicitly say that a CFA Institute member will act with which of the following?

A) Solemnity.

B) Integrity.

C) Competence.

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Component one mentions all of these except solemnity.

mouse123

According to the CFA Institute Code of Ethics, CFA Institute members shall:

A) maintain knowledge and comply with all applicable laws, rules and regulations.

B) preserve the confidentiality of information communicated by clients, prospects, or employers concerning investment matters.

C) act with integrity, competence, diligence, respect, and in an ethical manner when dealing with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and other participants in the global capital markets.

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Acting with integrity, competence, diligence, respect, and in an ethical manner when dealing with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and other participants in the global capital markets is one of the six components of the Code of Ethics, whereas the other statements are part of the Standards of Professional Conduct.

mouse123

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

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

B) using reasonable care and exercising independent professional judgment.

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

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

mouse123

According to the CFA Institute Code of Ethics, CFA Institute Members and Candidates must do all of the following EXCEPT:

A) exercise independent judgment.

B) act with integrity and dignity.

C) not knowingly violate the securities acts and laws.

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Not knowingly violating the law is in the Standards of Professional Conduct, but is not in the Code of Ethics.

mouse123

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

A) Members shall use reasonable care and exercise independent professional judgment.

B) Members shall not knowingly participate or assist in any violation of such laws, rules, or regulations.

C) Members shall not engage in any professional conduct involving dishonesty, fraud, deceit, or misrepresentation or commit any act that reflects adversely on their honesty, trustworthiness, or professional competence.

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

mouse123

According to the Code of Ethics, a member reflects credit on the profession when a member:

A) practices in a professional and ethical manner.

B) consults with other members on a regular basis.

C) places the clients first.

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Component four of the Code says that a member shall “Practice and encourage others to practice in a professional and ethical manner that will reflect credit on members and the profession.” Neither of the other choices are implied by the Code.

mouse123

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

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

B) use reasonable care and exercise independent professional judgment.

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

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

mouse123

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

A) not knowingly participate or assist in any violation of laws, rules, or regulations.

B) use reasonable care and exercise independent professional judgment.

C) use particular care in determining applicable fiduciary duty.

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Using reasonable care and exercising independent professional judgment is one of the components of the Code of Ethics, whereas the other statements are part of the Standards of Professional Conduct.