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CFA Level 1-Study Session Ethical and Professional Standards
CFA Level 1 - Ethics, including ethics, code of conduct, environmental impact, ethical decision-making, and market operations. Fair treatment and other content points are sorted out. Friends, let’s learn quickly.
Edited at 2023-03-12 11:54:25
CFA Level 1-Study Session Ethical and Professional Standards
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Study Session 1 Ethical and Professional Standards
• R56 Ethics and Trusts in the Investment Profession
1. Explain ethics and professionalism
Ethics
Ethical Conduct
Application
Code of Ethics
Standards of Conduct
Application
2. Explain professionalism in investment management
Application
3. Challenges to Ethical Conduct
Overconfidence
Situational influences
Application
Application
Application
4. Ethical vs. Legal Standards
Application
5. Framework for ethical decision making
Application
Application
Application
Application
• R57 Code of Ethics and Standards of Professional Conduct
1. Proceedings
Sources
2.The Panel
Procedure
Saction
3. Code of Ethics
Asset Manager Code (AMC)
Codes and Standards
4. Ethics & Professional Standards
• R58 Guidance for Standards I-VII
1. Professionalism
Knowledge of the law
Content
Guidance
Code and Standards vs. local law
Case4
Case5
Case7
Participation or association with violations by others
Application
Case1
Case2
Case3
Investment Products and Applicable Laws
Case6
Recommended procedures
Independence and objectivity
Content
Guidance
Common situation
Scenario1
Case6
Scenario2
Case8
Buy-Side clients
Department of Securities firm
Fund manager relationships and Custodial Relationships
Case7
Firewall
Application
Performance Measurement and Attribution
Public companies
Case2
Case3
Case4
Credit rating agency opinions
Case5
Manager Selection/Procurement Process
Issuer-Paid research
Case10
Travel Funding
Case1
Social Activities
Recommended procedures
Misrepresentation
Content
Guidance
Misrepresentation
Knowingly
Case2
Application
Omission
Case1
Impact on Investment Practice
Case3
Case5
Performance Reporting
Social Media
Case9
Plagiarism
Types of Source
Case4
Case5
Case6
Case8
Case10
Work Completed for Employer
Misconduct
Content
Guidance
Dishonest conduct
Case2
Case3
Case4
Application
Absence of appropriate conduct and sufficient effort
Negatively affect
Case1
2. Integrity of Capital Markets
Material nonpublic information
Content
Case2
Guidance
Investment actions
“Material” “Nonpublic” information
Matter of “Material”
“Nonpublic” information
Case1
Case3
Case7
Application
Mosaic Theory
Case4
Case5
Case6
Social Media
Industry expert
Case11
Investment Research Reports
Case7
Recommended Procedures
Firewall
Inter-department communication
Personal trading limitation
Proprietary trading procedures
Market manipulation
Content
Guidance
Intent
Case1
Case2
Case3
Case4
Case5
Case6
Case8
Application
3. Duty To Clients
Loyalty, pride and care
Content
Guidance
Fiduciary
Investment policy statement(IPS)
Case10
Identifying the Actual Investment Client
Case1
Case9
Family Account
Case7
Developing the Client’s Portfolio
Soft Commission (Soft dollars) Policies
Directed brokerage
Case2
Case3
Case4
Case5
Proxy Voting Policies
Application
Recommended Procedures
Regular account information
Diversify
Fair dealing
Content
Guidance
Fairly≠equally
Premium level service
Case6
Case1
Case2
Case4
Investment Recommendations
Report types
Investment Action
Trade system
Case3
Case5
Case8
Recommended Procedures
Procedures for block trades and new issues
Application
Suitability
Content
Case1
Case2
Case8
Application
Guidance
IPSUpdating
Case3
The Need for Diversification
Managing to an Index or Mandate
Case4
Case5
Unsolicited Trade Requests
Recommended Procedures
Regular updates
Suitability test policies.
Performance presentation
Content
Guidance
Misrepresentations of past performance
Case1
Brief presentation&Detailed information
Recommended Procedures
Apply GIPS Standard
Gross of fee/Net of fee
Case2
Case3
Case4
Case5
Case6
Application
Preservation of confidentiality
Content
Case1
Case5
Application
Guidance
Status of Client
Compliance with Laws
Case4
Electronic Information and Security
Professional Conduct Investigations by CFA Institute
Recommended Procedures
4. Duty To Employers
Loyalty
Content
Guidance
Independent Practice
Case5
Leaving an Employer
Ownership
Case4
Case1
Case2
Case6
Case9
Application
Use of Social Media
Case12
Whistleblowing
Nature of Employment
Case3
Additional compensation arrangements
Content
Case1
Case2
Case3
Application
Guidance
Written Consent
Part-time
Recommended Procedures
State the terms
Responsibility of supervisors
Content
Case1
Case2
Case4
Case6
Guidance
Delegate
Case5
Effective compliance systems
Inadequate Procedures
Application
Potential violation
5. Investment
Diligence and reasonable basis
Content
Guidance
Defining Diligence and Reasonable Basis
Case1
Case2
Group Research and Decision Making
Case3
Case4
Application
Using Secondary or Third-Party Research
Selecting External Advisers and Subadvisers
Case7
Case8
Case10
Using Quantitatively Oriented Research
Case11
Case12
Developing Quantitatively Oriented Research
Case9
Case15
Communication with clients
Content
Case1
Case3
Case4
Case5
Case6
Case9
Application
Guidance
Different Forms of Communication
Identifying Risks and Limitations of Analysis
Liquidity
Capacity
Case11
Distinction between Facts and Opinions in Reports
Case2
Record retention
Content
Case2
Guidance
Records Are Property of the Firm
Case3
New Media Records
Maintaining records
Application
Recommended Procedures
6. Conflicts of Interest
Disclosure of conflicts
Content
Guidance
Inherit the shares
Case3
Case4
Disclosure to Employers
Disclosure to Clients
Case1
Case2
Case8
Application
Cross-Departmental Conflicts
Disclosure of performance arrangements
Incentive fees
Case5
Additional compensation
Case6
Case7
Referral fee
Issuer-paid research
Voting proxy
Recommended Procedures
Priority of transaction
Content
Case1
Case2
Case3
Case4
Guidance
Aligned interest
Application
Family account
Case5
Recommended Procedures
Referral fees
Content
Case1
Case2
Case3
Application
Recommended Procedures
7. Responsibility as Members
Conduct as members and candidates
Content
Guidance
Conduct covered includes but is not limited
Case1
Case2
Case8
Expressing an Opinion
Case4
Application
Reference to CFA institute, designation
Content
Guidance
How to use CFA
Case1
Case5
Application
CFA Institute membership
Case2
• R59 Introduction to the Global Investment Performance Standards (GIPS)
Standard creation
Claim compliance
Firm-wide basis
Definition of the firm
Composites
Firm's definition of discretion
Benefits from compliance
Verification
• R60 Ethics Application