Reading 1: Code of Ethics and Standards of Professional Cond 2010, center, border, following, activities

bmaggie

Session 1: Ethical and Professional Standards
Reading 1: Code of Ethics and Standards of Professional Conduct

LOS b, (Part 1): State the six components of the Code of Ethics.

 

 

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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bmaggie

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) 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.

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

bmaggie

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) 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.

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

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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.

bmaggie

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

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.

bmaggie

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

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

B) 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.

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

bmaggie

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

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

B) 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.

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

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

bmaggie

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.”

bmaggie

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) not knowingly violate the securities acts and laws.

C) act with integrity and dignity