Ethical and Professional Standards 【Reading 4】Sample procedures, following

JonnyKay

When designing policies and procedures to implement the CFA Institute Research Objectivity Standards, all of the following are objectives, EXCEPT:

A) put the client’s interest before the firm’s interest, minimize possible conflicts that may adversely affect the independence and objectivity of research, and support self-regulation.

B) fully disclose conflicts of interest, put the client’s interest before the firm’s interest, and reference CFA Institute membership in a dignified and judicious manner.

C) provide a work environment conducive to ethical behavior, fully disclose conflicts of interest, and put the client’s interest before the employees’ interest.

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While important, referencing CFA Institute membership in a dignified and judicious manner is not an objective of the Research Objectivity Standards.

JonnyKay

Bill Williams, CFA, has been tasked by his firm, Null Investments, to ensure that the firm’s policies and procedures allow its research department to maintain its independence and objectivity. One of the objectives Williams has outlined for Null’s policies and procedures is that they should promote the establishment of a non-governmental regulatory body. This body will be responsible for creating standards that assure that research firms produce independent and objective research. Is this objective for Null’s policies and procedures consistent with the objectives of the CFA Institute Research Objectivity Standards (ROS)?

A) No, the ROS are intended to promote self-regulation to assure independent and objective research.

B) No, the ROS support the establishment of laws to assure independent and objective research but do not support a regulatory body.

C) Yes.

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Among the objectives of the CFA Institute Research Objectivity Standards is the goal of promoting industry self-regulation through the voluntary adoption of standards that promote and reward independent and objective research.