Reading 1: Code of Ethics and Standards of Professional Cond structure, process, 2010

bmaggie

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

 

LOS a: Describe the structure of the CFA Institute Professional Conduct Program and the process for the enforcement of the Code and Standards.

 

A broker and CFA charterholder has been arrested for the crime of murder. Which, if any, of the following could result in the member being summarily suspended from using the CFA designation?

A) Either being convicted or pleading guilty to the crime.

B) Both of the results listed here.

C) He is acquitted of the crime, but he is barred from continuing to work in the investment industry.

bmaggie

A broker and CFA charterholder has been arrested for the crime of murder. Which, if any, of the following could result in the member being summarily suspended from using the CFA designation?

A) Either being convicted or pleading guilty to the crime.

B) Both of the results listed here.

C) He is acquitted of the crime, but he is barred from continuing to work in the investment industry.

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Both of these are reasons that CFA Institute may use for summarily suspending use of the CFA designation.

bmaggie

Steve Jones is a member of CFA Institute but has not earned the CFA designation yet. CFA Institute is investigating Jones’ activities. If Jones declines to cooperate, he:

A) is within his right only because it could be self incriminating.

B) could be summarily suspended from membership.

C) is within his right only because he does not have the CFA designation yet.

bmaggie

Steve Jones is a member of CFA Institute but has not earned the CFA designation yet. CFA Institute is investigating Jones’ activities. If Jones declines to cooperate, he:

A) is within his right only because it could be self incriminating.

B) could be summarily suspended from membership.

C) is within his right only because he does not have the CFA designation yet.

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Refusing to cooperate with a CFA Institute investigation of a member’s behavior could lead to suspension of membership. If the member has earned the right to use the CFA designation, the punishment could be suspension of use of the designation.

bmaggie

Which of the following is least accurate regarding reasons for imposing a summary suspension upon covered persons?

A) Failure to return the annual professional conduct statement.

B) Misdemeanor charge for the possession of illegal narcotic substances.

C) Disbarment under securities laws.

bmaggie

Which of the following is least accurate regarding reasons for imposing a summary suspension upon covered persons?

A) Failure to return the annual professional conduct statement.

B) Misdemeanor charge for the possession of illegal narcotic substances.

C) Disbarment under securities laws.

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A single misdemeanor conviction for possession of illegal narcotics is not grounds for a summary suspension.

bmaggie

With respect to filing complaints concerning the professional conduct of a CFA Institute member, which of the following is TRUE?

A) Only other members can write the Professional Conduct Program staff with a complaint concerning the conduct of another member.

B) Anyone can write the Standards and Policy Committee staff with a complaint concerning the conduct of any member.

C) Anyone can write the Professional Conduct Program staff with a complaint concerning the conduct of any member.

bmaggie

With respect to filing complaints concerning the professional conduct of a CFA Institute member, which of the following is TRUE?

A) Only other members can write the Professional Conduct Program staff with a complaint concerning the conduct of another member.

B) Anyone can write the Standards and Policy Committee staff with a complaint concerning the conduct of any member.

C) Anyone can write the Professional Conduct Program staff with a complaint concerning the conduct of any member.

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This is from page ix of the Standards of Practice Handbook. Complaints may be filed by anyone and are to be written to the Professional Conduct Program staff.

bmaggie

With respect to the CFA Institute enforcement of the Code and Standards, which of the following is NOT a possible disciplinary sanction?

A) Private censure.

B) Payment of a fine.

C) Refusing to allow a candidate for the CFA designation to take one of the exams.

bmaggie

With respect to the CFA Institute enforcement of the Code and Standards, which of the following is NOT a possible disciplinary sanction?

A) Private censure.

B) Payment of a fine.

C) Refusing to allow a candidate for the CFA designation to take one of the exams.

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CFA Institute does not impose fines. All of the other choices are possible sanctions. CFA Institute may suspend a candidate from further participation in the CFA program.