hinsafdar

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) Giving free introductory seminars on investing to the public.

C) Improve professional competence.

---

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

hinsafdar

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

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

B) 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.

C) 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.

---

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

hinsafdar

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

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

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

C) 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.

---

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.

hinsafdar

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.

---

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.

hinsafdar

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.

---

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.

hinsafdar

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.

---

Component one mentions all of these except solemnity.

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.

---

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.

---

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.

---

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.

---

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