CAIA EXAM REVIEW 2025 QUESTIONS
AND ANSWERS
Six Standard of Professional Conduct - ANS Professionalism
Integrity of Capital Markets
Duties to Clients
Duties to Employers
Investment Analysis, Recommendations, and Actions
Conflicts of Interest
Six Standard of Professional Conduct: Professionalism - ANS 1. Knowledge of the Law -
Members must understand and comply with all applicable laws of all regulatory professional
association governing their professional activities. In the event of conflict, members must
comply with the more strict ruling.
2. Independence and Objectivity - Members must use reasonable care and judgement to
achieve and maintain independence and objectivity. Members cannot accept any gift or
compensation that reasonably could be expected to compromise their own or another's
independence.
3. Misrepresentation - Members must not knowingly make any misrepresentations related to
investment analysis. recommendations, actions, or other professional activities.
4. Misconduct - Members must not engage in any professional conduct involving dishonesty,
fraud, or commit any act that reflects adversely on their professional reputation.
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, Six Standard of Professional Conduct: Integrity of Capital Markets - ANS 1. Material Non-
public Information - Members who posses material non-public information (MNPI) must not act
or cause others to act on the information.
2. Market Manipulation - embers must not engage in practices that distort prices or artificially
inflate trading volume with the intent to mislead market participants.
Six Standard of Professional Conduct: Duties to Clients - ANS 1. Loyalty, Prudence, and Care -
Members have a duty of loyalty to their clients and must exercise reasonable car and prudent
judgement
2. Fair Dealing - Members must deal fairly and objectively with all clients when engaging in
professional activities
3. Suitability - When members are in an advisory relationship with a client they must: 1) make a
reasonable inquiry into the clients investment experience, risk / return objectives, and financial
constraints, 2) Determine that the investment is suitable for the clients financial situation, and
3) Judge suitability in context with the clients overall portfolio.
4. Performance Presentation - When communicating investment performance information,
Members must make reasonable efforts to ensure the information is fair, accurate, and
complete.
5. Preservation of Confidentiality - Members must keep information about current, former, and
prospective clients confidential unless: 1) Info concerns illegal activities, 2)disclosure is required
by law, and 3) The client or prospect permits disclosure of the information.
Six Standard of Professional Conduct: Duties to Employers - ANS 1. Loyalty - Members must
act for the benefit of their employer and not deprive employer of skills, abilities, or otherwise
cause harm to the employer.
2. Additional Compensation Arrangements - Members must not accept gifts or compensation
that creat a conflict of interest with their employers interests unless they obtain written
consent from both parties.
3. Responsibilities of Supervisors - Members must make reasonable efforts to ensure that
anyone subject to their supervision complies with applicable rules and regulations.
Six Standard of Professional Conduct: Investment Analysis, Recommendations, and Actions -
2
ANS 1. Diligence and Reasonable Bias - Members must 1) exercise diligence when analyzing,
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@COPYRIGHT @THEBRIGHT 2025/2026
AND ANSWERS
Six Standard of Professional Conduct - ANS Professionalism
Integrity of Capital Markets
Duties to Clients
Duties to Employers
Investment Analysis, Recommendations, and Actions
Conflicts of Interest
Six Standard of Professional Conduct: Professionalism - ANS 1. Knowledge of the Law -
Members must understand and comply with all applicable laws of all regulatory professional
association governing their professional activities. In the event of conflict, members must
comply with the more strict ruling.
2. Independence and Objectivity - Members must use reasonable care and judgement to
achieve and maintain independence and objectivity. Members cannot accept any gift or
compensation that reasonably could be expected to compromise their own or another's
independence.
3. Misrepresentation - Members must not knowingly make any misrepresentations related to
investment analysis. recommendations, actions, or other professional activities.
4. Misconduct - Members must not engage in any professional conduct involving dishonesty,
fraud, or commit any act that reflects adversely on their professional reputation.
1
Page
@COPYRIGHT @THEBRIGHT 2025/2026
, Six Standard of Professional Conduct: Integrity of Capital Markets - ANS 1. Material Non-
public Information - Members who posses material non-public information (MNPI) must not act
or cause others to act on the information.
2. Market Manipulation - embers must not engage in practices that distort prices or artificially
inflate trading volume with the intent to mislead market participants.
Six Standard of Professional Conduct: Duties to Clients - ANS 1. Loyalty, Prudence, and Care -
Members have a duty of loyalty to their clients and must exercise reasonable car and prudent
judgement
2. Fair Dealing - Members must deal fairly and objectively with all clients when engaging in
professional activities
3. Suitability - When members are in an advisory relationship with a client they must: 1) make a
reasonable inquiry into the clients investment experience, risk / return objectives, and financial
constraints, 2) Determine that the investment is suitable for the clients financial situation, and
3) Judge suitability in context with the clients overall portfolio.
4. Performance Presentation - When communicating investment performance information,
Members must make reasonable efforts to ensure the information is fair, accurate, and
complete.
5. Preservation of Confidentiality - Members must keep information about current, former, and
prospective clients confidential unless: 1) Info concerns illegal activities, 2)disclosure is required
by law, and 3) The client or prospect permits disclosure of the information.
Six Standard of Professional Conduct: Duties to Employers - ANS 1. Loyalty - Members must
act for the benefit of their employer and not deprive employer of skills, abilities, or otherwise
cause harm to the employer.
2. Additional Compensation Arrangements - Members must not accept gifts or compensation
that creat a conflict of interest with their employers interests unless they obtain written
consent from both parties.
3. Responsibilities of Supervisors - Members must make reasonable efforts to ensure that
anyone subject to their supervision complies with applicable rules and regulations.
Six Standard of Professional Conduct: Investment Analysis, Recommendations, and Actions -
2
ANS 1. Diligence and Reasonable Bias - Members must 1) exercise diligence when analyzing,
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@COPYRIGHT @THEBRIGHT 2025/2026
