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What circumstances can prompt an inquiry by CFA Institute Designated Officers?
- 1. Members and Candidates must self0disclose on thea nnual professional Conduct Statement all maters that question their professional conducts.
- 2. Written complaints received by Professional Conduct Staff.
- 3.CFA Institute staff may become aware of questionable ocnduct by a member or candidate through the media or public source.
- 4. CFA Exam proctors may subit a violation report for any candidate suspected to have compromised his or her professional conduct during the exam,
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What happens when an inquiry is initiated?
Professional Conduct staff conducts investegation that may include requesting a written explanation from the meber or candidate, interviewing the candidate, complaining parties, and thir parties and collecdting documents and records in support of its investigation. Officer can have no disciplinary sanction, issue a cautionary letter, or continue proceedings to discipline the member. If Designated Officer proposes a a sanction it can be rejected or accepted by the member or candidate.
If not accepted, the matter refered to a hearing panel composed of DRC (Disciplinary Reveiw Comittee) members and CFA institue members.
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If party or firm ensures its code of ethics meets principle of Code and Standards, what is the quoted language that thye can say?
“[Insert name of party] claims compliance with the CFA Institute Code of Ethics and Standards of Professional Conduct. This claim has not been verified by CFA Institute.”
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Members of CFA Institute and candidates must:.... (CODE OF ETHICS)
- -Act with integrity, competence, diligence, respect, and in an ehtical manner with the public, clients, prospective client...
- -Place integrity of the investment profession and intersts of client abover personal interests.
- -Use reasonable care and excercise independen professional judegment when coinducting investment analysis making investment repcommendations
- -Practice and encourage others to practice in professional and ethical manener that will reflect credit on themselves and the profession.
- -Promote integrity of and upghold rules governoing capital markets
- -Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professional.
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Seven Standards of Professional Conduct
- 1. Proffesionalism
- a. Knowledge of the Law
- b.Independence and Objectivity
- c. Misrepresentation
- d. Misconduct
- 2.Integrity of Markets
- a.material non-public information
- b.market manipulation
- 3.Duties to Clients
- a.Loyalty, Prudence, Care
- b.Fair Dealing
- c.Suitability
- d.Performance Presentation
- E.Preservation of Confidentiality
- 4.Duties to Employers
- A. Loyalty
- B.Additional Compensation Arrangements
- C.Responsibilities of supervisors
- 5. Investment Analysis, Recommendations, and Actions
- a.Diligence and Reasonable Basis
- b. communication with clients and prospective clients
- c.Record Retentiion
- 6. Conflicts of Interest
- A.disclosure of conflicts
- b. priority of transactions
- c. referral fees
- VII. Responsibilities as a CFA institute member or candidate
- a. Conduct as members and candidates in the CFA program
- b.Reference to CFA Institute, CFA designation, and CFA program.
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If you are a board member and find that your company is doing illegal things. Then you check with legal counsel and determines that stuff was still illegal and the next board meeting you urge the board to disclose illegal activity and board votes not to make a discosure, you must?
Resign from the board and seek legal counsel as to legal disclosure requriements
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Are you requiired to review the assumptions used and evaluate objectivity of externally generated reports?
YES!
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