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9 Cards in this Set
- Front
- Back
- 3rd side (hint)
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briefly explain the 6 components of the CODE OF ETHICS
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P- Priority = client interest 1st
E - Encourage prof. practice J - Judgement = use it! M - Maintain current knowledge A - Act with integrity, competence, etc R - RULES - follow them |
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What are the 7 Standards of Professional Conduct?
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1. Professionalism (word)
2. Integrity of Capital Markets (C) 3. Duties to Clients (D/C) 4. Duties to Employees (D ->E) (fgh...) 5. Investment Analysis (fhg...I) 6. Conflicts of interest ( I = I) 7. Responsibility as CFA member (r from interest --> R) |
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Standards of Professional Practice
1. Professionalism |
EASY - remember LISM
L: Law = knowledge of and when in doubt opt for strictest adherence I: Independence & Objectivity = remain above board in respect to gifts & compensations that might sway objectivity S: MiSrepresentation = Do not act Shady M: Misconduct = Do not act shady |
LISM
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Standards of Professional Practice
2. Integrity of Capital Markers |
Key words from title: I and M
I: Material nonpublic Information (Martha Stewart) M: Market Manipulation: no monkeying with the market |
I M
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Standards of Professional Practice
3. Duties to Clients |
key words C & D & S (end of ClientS)
C: Clients interests above self or employer D: Fair Dealing - don't be shady S: Suitability - clients needs - act with interest of portfolio as prediscussed ....more..... Px2 P: Performance Presentation = truly present #'s P: Preservation of confidentiality = Shhh unless against the law or allowed by client |
CDS
P P |
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Standards of Professional Practice
4. Duties to employers |
L from empLoyers
P from emPloyers S from employerS L: Loyalty = remain loyal to employers (no telling/ use all your skills) P: comPensation = no outside compensation that would result in conflict unless agreed in writing by both parties (comp from clients = ok = like performance bonus) S: Supervisors = Responsibility as a Super to play by rules and follow regs within realm of control |
emPLoyerS
L P S * beneficiary of fund = #1 priority |
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Standards of Professional Practice
5. Investment Analysis, Recommendations and Actions |
From ReCommenDation
R: Records = system of record keeping C: Communication = Disclosure of investment and analysis process - don't be shady D: Diligence: = be diligent in analyzing and investing - don't be shady |
ReCommenDations
R C D |
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Standards of Professional Practice
6. Conflicts of Interest |
CPR
C: disclosure of Conflicts = full disclosure so you avoid being shady P: Priority = order transaction to do stuff for clients and employees before self R: Referral Fees = You getting "kick backs" must disclose |
CPR
meh |
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Standards of Professional Practice
7. Responsibilities as CFA member or candidate |
* BE A GOOD CFA MEMBER/CANDIDATE
* DO NOT BOAST CREDENTIALS |
obvious
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