This repository has been archived by the owner on Nov 14, 2023. It is now read-only.
-
Notifications
You must be signed in to change notification settings - Fork 7
/
Copy path1-code-of-ethics-and-standards-of-professional-conduct.html
359 lines (295 loc) · 15.8 KB
/
1-code-of-ethics-and-standards-of-professional-conduct.html
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
<!doctype html>
<html lang="en">
<head>
<meta charset="utf-8">
<title>Study Session 1 | Reading 1 | Code of Ethics and Standards of Professional Conduct</title>
<meta name="description" content="Chartered Financial Analyst Level 3 Study Materials">
<meta name="author" content="MacLane Wilkison">
<meta name="apple-mobile-web-app-capable" content="yes" />
<meta name="apple-mobile-web-app-status-bar-style" content="black-translucent" />
<meta name="viewport" content="width=device-width, initial-scale=1.0, maximum-scale=1.0, user-scalable=no">
<link rel="stylesheet" href="css/reveal.min.css">
<link rel="stylesheet" href="css/theme/default.css" id="theme">
<!-- For syntax highlighting -->
<link rel="stylesheet" href="lib/css/zenburn.css">
<!-- If the query includes 'print-pdf', use the PDF print sheet -->
<script>
document.write( '<link rel="stylesheet" href="css/print/' + ( window.location.search.match( /print-pdf/gi ) ? 'pdf' : 'paper' ) + '.css" type="text/css" media="print">' );
</script>
<!--[if lt IE 9]>
<script src="lib/js/html5shiv.js"></script>
<![endif]-->
</head>
<body>
<div class="reveal">
<!-- Any section element inside of this container is displayed as a slide -->
<div class="slides">
<section>
<h1>Reading 1</h1>
<h3>Code of Ethics and Standards of Professional Conduct</h3>
<p>
<small>Created for <a href="http://alchemistsacademy.com">AlchemistsAcademy</a> by <a href="http://alchemistsacademy.com/about">MacLane Wilkison</a></small>
</p>
</section>
<section>
<h2>The Code of Ethics</h2>
<ul>
<li>Act with integrity, competence, diligence, respect, and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and other participants in the global capital markets</li>
<li>Place the integrity of the investment profession and the interests of clients above your own personal interests</li>
<li>Use reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities</li>
<li>Practice and encourage others to practice in a professional and ethical manner that will reflect credit on yourself and the profession</li>
</ul>
</section>
<section>
<h2>The Code of Ethics (cont'd)</h2>
<ul>
<li>Promote the integrity of and uphold the rules governing capital markets</li>
<li>Maintain and improve your professional competence and strive to maintain and improve the competence of other investment professionals</li>
</ul>
</section>
<section>
<h2>Standards of Professional Conduct</h2>
<ol>
<li>Professionalism</li>
<li>Integrity of Capital Markets</li>
<li>Duties to Clients</li>
<li>Duties to Employers</li>
<li>Investment Analysis, Recommendations, and Actions</li>
<li>Conflicts of Interest</li>
<li>Responsibilities as a CFA Institute Member/Candidate</li>
</ol>
</section>
<section>
<section>
<h1>Professionalism</h1>
</section>
<section>
<ol style="list-style-type: upper-alpha">
<li>Knowledge of the Law</li>
<li>Independence and Objectivity</li>
<li>Misrepresentation</li>
<li>Misconduct</li>
</ol>
</section>
<section>
<h2>A. Knowledge of the Law</h2>
<p>Members and Candidates must understand and comply with all applicable laws, rules, adn regulations of any government, regulatory organization, licensing agency, or professional association governing their professional activities. In the event of conflict, Members and Candidates must comply with the more strict law, rule, or regulation. Members and Candidates must not knowingly participate or assist in and must dissociate from any violations of such laws, rules, or regulations</p>
</section>
<section>
<h2>B. Independence and Objectivity</h2>
<p>Members and Candidates must use reasonable care and judgment to achieve and maintain independence and objectivity in their professional activities. Members and Candidates must not offer, solicit, or accept any gift, benefit, compensation, or consideration that reasonably could be expected to compromise their own or another's independence and objectivity</p>
</section>
<section>
<h2>C. Misrepresentation</h2>
<p>Members and Candidates must not knowingly make any misrepresentations relating to investment analysis, recommendations, actions, or other professional activities</p>
</section>
<section>
<h2>D. Misconduct</h2>
<p>Members and Candidates must not engage in any professional conduct involving dishonesty, fraud, or deceit or commit any act that reflects adversely on their professional reputation, integrity, or competence</p>
</section>
</section>
<section>
<section>
<h1>Integrity of Capital Markets</h1>
</section>
<section>
<ol style="list-style-type: upper-alpha">
<li>Material Nonpulic Information</li>
<li>Market Manipulation</li>
</ol>
</section>
<section>
<h2>A. Material Nonpublic Information</h2>
<p>Members and Candidates who possess material nonpublic information that could affect the value of an investment must not act or cause others to act on the information</p>
</section>
<section>
<h2>B. Market Manipulation</h2>
<p>Members and Candidates must not engage in practices that distort prices or artificially inflate trading volume with intent to mislead market participants</p>
</section>
</section>
<section>
<section>
<h1>Duties to Clients</h1>
</section>
<section>
<ol style="list-style-type: upper-alpha">
<li>Loyalty, Prudence, and Care</li>
<li>Fair Dealing</li>
<li>Suitability</li>
<li>Performance Presentation</li>
<li>Preservation of Confidentiality</li>
</ol>
</section>
<section>
<h2>A. Loyalty, Prudence, and Care</h2>
<p>Members and Candidates have a duty of loyalty to their clients and must act with reasonable care and exercise prudent judgment. Members and Candidates must act for the benefit of their clients and place their clients' interests before their employer's or their own interests</p>
</section>
<section>
<h2>B. Fair Dealing</h2>
<p>Members and Candidates must deal fairly and objectively with all clients when providing investment analysis, making investment recommendations, taking investment action, or engaging in other professional activities</p>
</section>
<section>
<h2>C. Suitability</h2>
<p>When Members and Candidates are in an advisory relationship with a client, they must:</p>
<ol style="list-style-type: lower-alpha">
<li>Make a reasonable inquiry into a client's investment experience, risk and return objectives, and financial constraints prior to making an investment recommendation or taking investment action and must reasses and update this information regularly</li>
<li>Determine that an investment is suitable to the client's financial situation and consistent with the client's written objectives, mandates, and constraints before making an investment recommendation or taking investment action</li>
<li>Judge the suitability of investments in the context of the client's total portfolio</li>
</ol>
</section>
<section>
<h2>C. Suitability (cont'd)</h2>
<p>When Members and Candidates are responsible for managing a portfolio to a specific mandate, strategy, or style, they must make only investment recommendations or take only investment actions that are consistent with the stated objectives and constraints of the portfolio</p>
</section>
<section>
<h2>D. Performance Presentation</h2>
<p>When communicating investment performance information, Members and Candidates must make reasonable efforts to ensure that it is fair, accurate, and complete</p>
</section>
<section>
<h2>E. Preservation of Confidentiality</h2>
<p>Members and Candidates must keep information about current, former, and prospective clients confidential unless:</p>
<ol>
<li>The information concerns illegal activities on the part of the client or prospective client</li>
<li>Disclosure is required by law</li>
<li>The client or prospective client permits disclosure of the information</li>
</ol>
</section>
</section>
<section>
<section>
<h1>Duties to Employers</h1>
</section>
<section>
<ol style="list-style-type: upper-alpha">
<li>Loyalty</li>
<li>Additional Compensation Arrangements</li>
<li>Responsibilities of Supervisors</li>
</ol>
</section>
<section>
<h2>A. Loyalty</h2>
<p>In matters related to their employment, Members and Candidates must act for the benefit of their employer and not deprive their employer of the advantage of their skills and abilities, divulge confidential information, or otherwise cause harm to their employer</p>
</section>
<section>
<h2>B. Additional Compensation Arrangements</h2>
<p>Members and Candidates must not accept gifts, benefits, compensation, or consideration that competes with or might reasonably be expected to create a conflict of interest with their employer's interest unless they obtain written consent from all parties involved</p>
</section>
<section>
<h2>C. Responsibilities of Supervisors</h2>
<p>Members and Candidates must make reasonable efforts to detect and prevent violations of applicable laws, rules, regulations, and the Code and Standards by anyone subject to their supervision or authority</p>
</section>
</section>
<section>
<section>
<h1>Investment Analysis, Recommendations, and Actions</h1>
</section>
<section>
<ol style="list-style-type: upper-alpha">
<li>Diligence and Reasonable Basis</li>
<li>Communication with Clients and Prospective Clients</li>
<li>Record Retention</li>
</ol>
</section>
<section>
<h2>A. Diligence and Reasonable Basis</h2>
<p>Members and Candidates must:</p>
<ol>
<li>Exercise diligence, independence, and thoroughness in analyzing investments, making investment recommendations, and taking investment actions</li>
<li>Have a reasonable and adequate basis, supported by appropriate research and investigation, for any investment analysis, recommendation, or action</li>
</ol>
</section>
<section>
<h2>B. Communication with Clients and Prospective Clients</h2>
<p>Candidates must:</p>
<ol>
<li>Disclose to clients and prospective clients the basic format and general principles of the investment processes they use to analyze investments, select securities, and construct portfolios and must promptly disclose any changes that might materially affect those processes</li>
</ol>
</section>
<section>
<h2>B. Communication with Clients and Prospective Clients (cont'd)</h2>
<p>Candidates must:</p>
<ol start="2">
<li>Use reasonable judgment in identifying which factors are important to their investment analyses, recommendations, or actions and include those factors in communications with clients and prospective clients</li>
<li>Distinguish between fact and opinion in the presentation of investment analysis and recommendations</li>
</ol>
</section>
<section>
<h2>C. Record Retention</h2>
<p>Members and Candidates must develop and maintain appropriate records to support their investment analyses, recommendations, actions, and other investment-related communications with clients and prospective clients</p>
</section>
</section>
<section>
<section>
<h1>Conflicts of Interest</h1>
</section>
<section>
<ol style="list-style-type: upper-alpha">
<li>Disclosure of Conflicts</li>
<li>Priority of Transactions</li>
<li>Referral Fees</li>
</ol>
</section>
<section>
<h2>A. Disclosure of Conflicts</h2>
<p>Members and Candidates must make full and fair disclosure of all matters that could reasonably be expected to impair their independence and objectivity or interfere with respective duties to their clients, prospective clients, and employer. Members and Candidates must ensure that such disclosures are prominent, are delivered in plain language, and communicate the relevant information effectively</p>
</section>
<section>
<h2>B. Priority of Transactions</h2>
<p>Investment transactions for clients and employers must have priority over investment transactions in which a Member or Candidate is the benficial owner</p>
</section>
<section>
<h2>C. Referral Fees</h2>
<p>Members and Candidates must disclose to their employer, clients, and prospective clients, as appropriate, any compensation, consideration, or benefit received from or paid to others for the recommendation of products or services</p>
</section>
</section>
<section>
<section>
<h1>Responsibilities as a CFA Institute Member or CFA Candidate</h1>
</section>
<section>
<ol style="list-style-type: upper-alpha">
<li>Conduct as Members and Candidates in the CFA Program</li>
<li>Reference to CFA Institute, the CFA Designation, and the CFA Program</li>
</ol>
</section>
<section>
<h2>A. Conduct as Members and Candidates in the CFA Program</h2>
<p>Members and Candidates must not engage in any conduct that compromises the reputation or integrity of CFA Institute or the CFA designation or the integrity, validity, or security of the CFA examinations</p>
</section>
<section>
<h2>B. Reference to CFA Institute, the CFA Designation, and the CFA Program</h2>
<p>When referring to CFA Institute, CFA Institute membership, the CFA designation, or candidacy in the CFA Program, Members and Candidates must not misrepresent or exaggerate the meaning or implications of membership in CFA Institute, holding the CFA designation, or candidacy in the CFA program</p>
</section>
</section>
<section>
<h1>THE END</h1>
<h3><a href="http://alchemistsacademy.com">AlchemistsAcademy.com</a></h3>
</section>
</div>
</div>
<script src="lib/js/head.min.js"></script>
<script src="js/reveal.min.js"></script>
<script>
// Full list of configuration options available here:
// https://github.com/hakimel/reveal.js#configuration
Reveal.initialize({
controls: true,
progress: true,
history: true,
center: true,
theme: Reveal.getQueryHash().theme, // available themes are in /css/theme
transition: Reveal.getQueryHash().transition || 'default', // default/cube/page/concave/zoom/linear/fade/none
// Optional libraries used to extend on reveal.js
dependencies: [
{ src: 'lib/js/classList.js', condition: function() { return !document.body.classList; } },
{ src: 'plugin/markdown/showdown.js', condition: function() { return !!document.querySelector( '[data-markdown]' ); } },
{ src: 'plugin/markdown/markdown.js', condition: function() { return !!document.querySelector( '[data-markdown]' ); } },
{ src: 'plugin/highlight/highlight.js', async: true, callback: function() { hljs.initHighlightingOnLoad(); } },
{ src: 'plugin/zoom-js/zoom.js', async: true, condition: function() { return !!document.body.classList; } },
{ src: 'plugin/notes/notes.js', async: true, condition: function() { return !!document.body.classList; } }
// { src: 'plugin/remotes/remotes.js', async: true, condition: function() { return !!document.body.classList; } }
]
});
</script>
</body>
</html>