hinsafdar

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) reflect credit on members and the profession.

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.”

hinsafdar

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

A) not knowingly violate the securities acts and laws.

B) exercise independent judgment.

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.

hinsafdar

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.

hinsafdar

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.

prashantsahni

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

A) 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.

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

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.

prashantsahni

Michael Malone, CFA, is an investment analyst for a large brokerage firm in New York who covers the airlines industry. After hours in his personal time, Malone maintains an online blog on which he expresses his personal opinions about various investment opportunities, including, but not limited to, the airlines industry. On his blog, he posts a very negative investment opinion about WestAir stock. Malone knows that WestAir's stock will be downgraded to a “sell” by his firm next week. Malone has:

A) violated Standard II(A) Material Nonpublic Information by releasing material that could negatively impact the price of the security.

B) violated Standard IV(A) Loyalty by divulging confidential information that is the intellectual property of his employer.

C) violated Standard VI(B) Priority of Transactions by releasing material information to the public before releasing to the firm’s clients.

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Malone is in violation of Standard II(A) because the information is both material and nonpublic. He is in violation whether or not he divulges the impending downgrade by his firm on his blog, because he is using nonpublic information. A “sell” opinion on a security issued by a large brokerage firm will almost certainly impact the stock’s price.

prashantsahni

Liam McCoy has lunch with a wealthy client whose portfolio he manages. McCoy advises the client to double his current position in the JKM Corporation due to an anticipated increase in sales. In accordance with Standard (V) Investment Analysis, Recommendations and Actions, when McCoy returns to his office he should:

A) document the details of the conversation with the client with regard to his investment recommendation.

B) identify other clients for whom JKM may be a suitable investment and notify them immediately of his recommendation.

C) verify the suitability of the investment recommendation before placing the client’s order.

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Standard V(C) Record Retention requires that Members and Candidates document all recommendation and communications with clients. McCoy should document the details of the conversation, including any resulting investment decisions and/or actions. The suitability of the investment should have already been considered before the recommendation and McCoy should not execute the order until the client instructs him to. Identifying other clients for this investment would fall under Standard III(B) Fair Dealing.

scbjoywang

tks~~~~~~~~~~~~~~~~~~~~~~~~~

mrcon

千里之行 始于足下

zgh1988

finished reading, thanks so much