CFA- Level 1 Ethical & Professional Standards questions with complete solutions

What are the seven standards of professional conduct? (LOS 1.b) correct answer: I: Professionalism II: Integrity of Capital Markets III: Duties to Clients IV: Duties to Employers V: Investment Analysis, Recommendations, and Actions VI: Conflicts of Interest VII: Responsibilities as a CFA Institute Member or CFA Candidate What are the six components of the Code of Ethics? (LOS 1.b) correct answer: o *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. o Place the integrity of the investment profession and the interest of clients above their own personal interests. o Use *reasonable care and exercise independent professional judgment* when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities. o *Practice and encourage others* to practice in a professional and ethical manner that will reflect credit on themselves and the profession.