CFA LEVEL1 道德部分要点整理(3)

Duties to clients

- loyalty, prudence and care to beneficiaries be represented. fair deal, best price and execution for clients

compliance: Submit to clients, at least quarterly, itemized statements showing all securities in custody and all debits, credits, and transactions.

- fair dealing (fairly is not equally, different service levels shall be disclosed, individual and institutional clients treated fairly, cannot take advantage of position in industry to disadvantage clients, e.g. IPO)

do not discriminate against any client

A reason of minimum lot size to deviate from a strict pro rata allocation to client is not violation of fair dealing Suitability

client information gathering: needs, circumstances, risk tolerance, use of leverage or not, consistent to stated mandates

written in IPS(investment policy statement)

focus characteristics of client's entire portfolio and give thorough explanations of investment recommendation to clients Performance Presentation

- members must make detailed information available on request and indicate that the presentation has offered limited info

- considering the sophistication of audience to whom the presentation is addressed; presenting performance of weighted composite of similar portfolios rather than a single account.

- terminated accounts; all appropriate disclosures to fully explain results: model results, gross or net of fees, etc.)

- maintaining data & records used to calculate the performance being presented. - the source of historical performance should be fully disclosed. Preservation of Confidentiality - do not divulge

- avoid disclosing info received from a client except to authorized co-workers who are also working for the client.

* Check with compliance department and outside counsel to determine whether applicable

securities regulations require reporting client's financial records if find any suspicious corruption, embezzlement of client

* If find client violating law, report to supervisor and try to end this illegal activity; if fail, seek legal advice about any disclosure should be made to legal or regulatory authorities and dissociate from any continuing association Duties to Employers Loyalty

- Always place clients' interest above employers' but consider the effects of their actions on firm integrity and sustainability

- Not required that employee puts employer interest ahead of family and other personal obligations; it's expected that employer and employees discuss such matters and balance these obligations and work obligations.

- Independent practice for compensation is allowed if a notification is provided to the

employer fully describing all aspects of the services, including compensation, duration, and the nature of the activities and if the employer consents to all terms of the proposed independent practice before it begins.

- must continue to act in employer's best interest until resignation is effective. violations: misappropriation of trade secrets; misuse of confidential info; soliciting employer's clients prior to leaving; self-dealing; misappropriation of client list (once an employee leaves a firm, the simple knowledge of names and existence of former clients is generally not confidential, there's no prohibition on the use of experience or knowledge gained while with a former employer)? - employee vs. independent contractor: still have a duty to abide by the agreement

* Taking any employer records, even those the member or candidate prepared, violates standard * The Code and Standards do not prohibit former employees from contacting clients of their previous firm, absent a non-compete agreement.

* Employee-led buyout of employer's business is not violation. Employer can decide how to respond to any buyout offer. If such a buyout takes place, clients should be informed of the nature of the changes in a timely manner.

* Contractor: current employer has first right to act on contractor's work

* Full-time employee serving as mayor does not conflict with employer's business interest, as long as the time commitment does not preclude performing his expected job functions well, there's no violation.

Additional Compensation Arrangements

- Written consent from employer includes e-mail communication. details including any performance incentives should be verified by the offering party.

Responsibilities of Supervisors

- prevent employees from violating; detect violations; enforce firm policies regarding investment or non-investing behaviors equally

- If there is violation, respond promptly and conduct a thorough investigation while placing limitations on the wrongdoer's activities.

* supervise reasonably and adequately the actions accountable to supervisors. e.g. disemmination of unpublished changes in recommendation

Investment Analysis, Recommendations, and Actions 1) Diligence and Reasonable Basis

-depends on the investment philosophy adhered to , members' and candidates' roles in the investment decision-making process, and the resources and support provided by employers=> degree of diligence, thoroughness of research, and the proper level of investigation required. -Reasonable basis: [1] a firm's financial results, operating history, and business cycle stage [2]fees and historical results for a mutual funds [3]limitations of any quantitative models used [4]a determination of whether peer group comparisons for valuation are appropriate. - using secondary or third-party research, criteria: [1]review assumptions used [2]analysis rigorous? [3]timely? [4]objectivity and independence of the recommendations

- quantitative research: able to explain the basic nature of quantitative research and how it is used to make inv …… 此处隐藏：6609字，全部文档内容请下载后查看。喜欢就下载吧 ……