CFA LEVEL1 道德部分要点整理

LOS1.a: Describe the structure of the CFA Institute Professional Conduct Program and the process of the enforcement of the Code and Standards. Several circumstances prompt an inquiry:

1) self-disclosure by members or candidates on annual Professional Conduct Statement of

involvement in civil litigation or a criminal investigation, or that the member or candidate is the subject of a written complaint.

2) written complaints about a member or candidate's professional conduct that are received by the Professional Conduct Staff.

3) Evidence of misconduct by a member or candidate that the Professional Conduct staff received through public sources

4) A report by a CFA exam proctor of a possible violation during the examination

Once an inquiry begins, may 1) request (in writing) an explanation from the subject member or candidate, & may:2) interview the subject member or candidate; 3) interview the complainant or other third parties; 4) collect documents and records relevant to the investigation.

Possible decision of Designated Officer: 1) no disciplinary sanctions are appropriate, 2) to issue a cautionary letter 3) to discipline the member or candidate

=> subject member or candidate can accept or reject the sanction, if reject, the matter will be referred to a panel of CFA institute members for a hearing. Sanctions imposed may include condemnation by the members' peers or suspension of candidates' continued participation in the CFA Program.

LOS1.b: State the six components of the Code of Ethics and the seven standards of Professional Conduct. Code of Ethics

1) 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.

2) Place the integrity of the investment profession and the interests of clients above their own interests.

3) Use reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities

4) Practice and encourage others to practice in a professional and ethical manner that will reflect credit on themselves and the profession.

5) Promote the integrity of, and uphold the rules governing capital markets

6) Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals. The Standards of Professional Conduct 1) Professionalism

2) Integrity of Capital Markets 3) Duties to Clients 4) Duties to Employers

5) Investment Analysis, Recommendations, and Actions 6) Conflicts of Interest

7) Responsibilities as a CFA Institute Member of CFA candidate

LOS1. c: Explain the ethical responsibilities required by the Code and Standards, including the sub-sections of each Standard. Professionalism:

1) knowledge of the Law: Conflict? => comply with the more strict law

2) independence and objectivity: use reasonable care and exercise independent professional judgment, no offer, solicit, accept any gift, benefit, compensation or consideration 3) misrepresentation

4) misconduct (dishonesty, fraud, deceit, commit ) Integrity of capital markets

1) Material Nonpublic Information

2) Market Manipulation: distort prices or artificially inflate trading volume with the intent to mislead market participants. Duties to clients

1) Loyalty, prudence, and care. 2) Fair dealing

3) Suitability: i) advisory: [1]inquiry into clients' investment experience, risk and return objectives, and financial constraints prior to making any investment recommendation or taking investment action and must reassess and update this info regularly. [2] determine the suitability of investment to clients' financial situation and consistent with written objectives, mandates, and constraints [3] judge the suitability of investment in the context of clients' total portfolio. ii) managing portfolio to a specific mandate, strategy, or style

4) Performance presentation: investment performance info must be fair, accurate and complete

5) Preservation of Confidentiality unless: illegal activities on the part of client; disclosure is required by law; or client permits disclosure. Duties to employers 1) Loyalty

2) Additional compensation arrangements (gifts, benefits, compensation, or consideration that competes with employer

3) Responsibilities of supervisors

Investment analysis, recommendations, and actions 1) diligence and reasonable basis (e.g. research)

2) communication with clients and prospective clients: disclosure to clients the basic format and general principles of investment processes; identification of important factors for investment analyses; distinguish between fact and opinion in the presentation of investment analysis and recommendations 3) Record retention Conflicts of interest 1) disclosure of conflicts 2) Priority of Transactions 3) Referral fees

Responsibilities as a CFA institute member or candidate 1) Conduct as members & candidates in the CFA program 2) Reference to CFA institute

Summary from examples: Professionalism

1) Regular procedures for an employee when finds some misconducts or violations: report to supervisor, if not solved => seek independent legal opinion, if not solved => dissociate from the misconducts anyway.

2) Comply with more strict laws or regulations of country of origin and country in which business is conducted.

No requirement under standards to report violations to governmental authorities but may be required to repor …… 此处隐藏：4684字，全部文档内容请下载后查看。喜欢就下载吧 ……