土豆妮

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) Integrity.

B) Solemnity.

C) Competence.

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Component one mentions all of these except solemnity.

土豆妮

 

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

A) Using reasonable care when making investment recommendations.

B) Improve professional competence.

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

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

土豆妮

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.

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

土豆妮

 

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.

土豆妮

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

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

B) Reflect credit on the profession.

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.

土豆妮

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

A) consults with other members on a regular basis.

B) practices in a professional and ethical manner.

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.

土豆妮

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) humility.

C) respect.

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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.

土豆妮

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.

土豆妮

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

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

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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.

土豆妮

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) correct.

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

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

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Component one mentions duties to the public, clients, prospects, employers, employees, and fellow members. No ordering of priorities is given.