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Study Session 1- CFA Code of Ethics and Standards of Professional Conduct


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What is the 1st component of the Code of Ethics?
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.
What is the 2nd component of the Code of Ethics?
Place the integrity of the investment profession and the interests of clients above their own personal interests.
What is the 3rd component of the Code of Ethics?
Use reasonable care and exercise independent professional judgement when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities.
What is the 4th component of the Code of Ethics?
Practice and encourage others to practice in a professional and ethical manner that will reflect credit on themselves and the profession.
What is the 5th component of the Code of Ethics?
Promote the integrity of, and uphold the rules governing, capital markets.
What is the 6th component of the Code of Ethics?
Maintain and improve their professional competenceand strive to maintain and improve the competence of other investment professionals.
What are the 7 standards of professional conduct?
1. Professionalism
2. Integrity of Capital Markets
3. Duties to Clients
4. Duties to Employers
5. Investment Analysis, Recommendations, and Action
6. Conflicts of Interest
7. Responsibilities as a CFA Institute Member or CFA Candidate
4 Categories of Professionalism
1. Knowledge of the law
2. Independence and objectivity
3. Misrepresentation
4. Misconduct
2 Categories of Integrity of Capital Markets
1. Material Nonpublic Information
2. Market Manipulation
5 Categories of Duties to Clients
1. Loyalty, Prudence and Care
2. Fair Dealing
3. Suitability
4. Performance Presentation
5. Preservation of Confidentiality
3 Categories Of Duties to Employers
1. Loyalty
2. Additional Compensation Arrangements
3. Responsibilities of Supervisors
3 Categories of Investment Analysis, recommendations, and action
1. Diligence and reasonable basis
2. communication with clients and prospective clients
3. record retention
3 Categories of Conflicts of Interest
1. Disclosure of Conflicts
2. Priority of Transactions
3. Referral Fees
2 Categories of Responsibilities as a CFA Institute Member or CFA Candidate
1. Conduct as Members and Candidates in the CFA Program
2. Reference to CFA Institute, the CFA designation, and the CFA program

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