CFA Level III: Ethical And Professional
Standards Questions And Answers With
Verified Solutions 100% Correct !!!
Code of Ethics - ANSWER✔✔
Standards of Professional Conduct: I. Professionalism - ANSWER✔✔I.
Professionalism
A. Knowledge of the Law
B. Independence and Objectivity
C. Misrepresentation
D. Misconduct
Standards of Professional Conduct: II. Integrity of Capital Markets -
ANSWER✔✔II. Integrity of Capital Markets
A. Material Nonpublic Information
B. Market Manipulation
Standards of Professional Conduct: III. Duties to Clients - ANSWER✔✔III. Duties
to Clients
A. Loyalty, Prudence, and Care
,B. Fair Dealing
C. Suitability
D. Performance Presentation
E. Preservation of Confidentiality
Standards of Professional Conduct: IV. Duties to Employers - ANSWER✔✔IV.
Duties to Employers
A. Loyalty
B. Additional Compensation Arrangements
C. Responsibilities of Supervisors
Standards of Professional Conduct: V. Investment Analysis, Recommendations,
and Actions - ANSWER✔✔V. Investment Analysis, Recommendations, and
Actions
A. Diligence and Reasonable Basis
B. Communication with Clients and Prospective Clients
,C. Record Retention
Standards of Professional Conduct: VI. Conflicts of Interest - ANSWER✔✔VI.
Conflicts of Interest
A. Disclosure of Conflicts
B. Priority of Transactions
C. Referral Fees
Standards of Professional Conduct: VII. Responsibilities as a CFA Institute
Member or CFA Candidate - ANSWER✔✔VII. Responsibilities as a CFA
Institute Member or CFA Candidate
A. Conduct as Participants in CFA Institute Programs
B. Reference to CFA Institute, the CFA Designation, and the CFA Program
Standard I(A): Professionalism - Knowledge of the Law -
ANSWER✔✔Understand and comply with all laws, rules, and regulations
(including Code and Standards) of any government, regulatory agency, or
association governing professional activities.
Always comply with MORE STRICT law, rule, or regulation.
, Do not knowingly assist in a violation of the law. If you are aware of a violation
and it is not ceasing even after bringing to the attention of a supervisor, dissociate
from the activity.
Guidance:
-Comply with the MOST STRICT law or regulation.
-If a violation occurs, notify supervisor or compliance (also acceptable to confront
wrongdoer directly, though not required).
-Dissociate from the activity if necessary.
-Inaction may be construed as participation.
-NO requirement to report violations to governmental authorities (but it may be
appropriate to do so in some cases).
Recommended Procedures:
-Stay up to date on laws; Regularly review written compliance procedures;
Maintain files.
-Seek compliance/legal advice as needed.
-Encourage firms to adopt code of ethics.
-Distribute information internally on applicable laws and regulations
-Have written procedures for reporting suspected violations.
-Members are strongly encouraged to report violations by other members.
Standard I(B): Professionalism - Independence and Objectivity - ANSWER✔✔Use
reasonable care and judgment to achieve and maintain independence in
professional activities.
Do NOT offer, solicit, or accept any compensation that could compromise
independence or objectivity.
Standards Questions And Answers With
Verified Solutions 100% Correct !!!
Code of Ethics - ANSWER✔✔
Standards of Professional Conduct: I. Professionalism - ANSWER✔✔I.
Professionalism
A. Knowledge of the Law
B. Independence and Objectivity
C. Misrepresentation
D. Misconduct
Standards of Professional Conduct: II. Integrity of Capital Markets -
ANSWER✔✔II. Integrity of Capital Markets
A. Material Nonpublic Information
B. Market Manipulation
Standards of Professional Conduct: III. Duties to Clients - ANSWER✔✔III. Duties
to Clients
A. Loyalty, Prudence, and Care
,B. Fair Dealing
C. Suitability
D. Performance Presentation
E. Preservation of Confidentiality
Standards of Professional Conduct: IV. Duties to Employers - ANSWER✔✔IV.
Duties to Employers
A. Loyalty
B. Additional Compensation Arrangements
C. Responsibilities of Supervisors
Standards of Professional Conduct: V. Investment Analysis, Recommendations,
and Actions - ANSWER✔✔V. Investment Analysis, Recommendations, and
Actions
A. Diligence and Reasonable Basis
B. Communication with Clients and Prospective Clients
,C. Record Retention
Standards of Professional Conduct: VI. Conflicts of Interest - ANSWER✔✔VI.
Conflicts of Interest
A. Disclosure of Conflicts
B. Priority of Transactions
C. Referral Fees
Standards of Professional Conduct: VII. Responsibilities as a CFA Institute
Member or CFA Candidate - ANSWER✔✔VII. Responsibilities as a CFA
Institute Member or CFA Candidate
A. Conduct as Participants in CFA Institute Programs
B. Reference to CFA Institute, the CFA Designation, and the CFA Program
Standard I(A): Professionalism - Knowledge of the Law -
ANSWER✔✔Understand and comply with all laws, rules, and regulations
(including Code and Standards) of any government, regulatory agency, or
association governing professional activities.
Always comply with MORE STRICT law, rule, or regulation.
, Do not knowingly assist in a violation of the law. If you are aware of a violation
and it is not ceasing even after bringing to the attention of a supervisor, dissociate
from the activity.
Guidance:
-Comply with the MOST STRICT law or regulation.
-If a violation occurs, notify supervisor or compliance (also acceptable to confront
wrongdoer directly, though not required).
-Dissociate from the activity if necessary.
-Inaction may be construed as participation.
-NO requirement to report violations to governmental authorities (but it may be
appropriate to do so in some cases).
Recommended Procedures:
-Stay up to date on laws; Regularly review written compliance procedures;
Maintain files.
-Seek compliance/legal advice as needed.
-Encourage firms to adopt code of ethics.
-Distribute information internally on applicable laws and regulations
-Have written procedures for reporting suspected violations.
-Members are strongly encouraged to report violations by other members.
Standard I(B): Professionalism - Independence and Objectivity - ANSWER✔✔Use
reasonable care and judgment to achieve and maintain independence in
professional activities.
Do NOT offer, solicit, or accept any compensation that could compromise
independence or objectivity.
