1. What are the 6 standards of professional conduct?: 1.) Professionalism 2)
Integrity of Capital Markets 3) Duties to clients 4) Duty to employers 5) Investment
Analysis, Recommendations & Actions 6) Conflict of Interest
PIDDIC
2. 4 Ethical Responsibilities Under Professionalism Standard: 1.) Knowledge of
the Law 2) Independence & Objectivity 3) Misrepresentation 4.) Misconduct
KIMM
3. 2 Ethical Responsibilities Under Integrity of Capital Markets Standard: 1.)
Material Non Public Information 2) Market Manipulation
MM
4. 5 Ethical Responsibilities Under Duties To Clients Standard: 1) Loyalty, Pru-
dence & Care 2) Fair Dealing 3) Suitability 4) Performance Presentation 5) Preser-
vation of Confidentiality
5. Suitability- When members & candidates are in an advisory relationship with
clients they must:: 1) Inquire into a client's or prospect's investment experienece,
risk/return objectives & financial constraints BEFORE making a recommendation or
taking action.
2) Determine investing is suitable to client's financial situation & consistent with the
client's written objectives, mandates & constraints BEFORE making recommenda-
tion or taking action.
3) Judge suitability of investment in context of WHOLE portfolio.
6. When can members break confidentiality with clients (hint 3 things): 1)
known information concerns illegal activities by the client or prospect
, 2) Disclosure required by law
3) Client or prospect permits disclosure of information
7. 3 Ethical responsibilities under duties to employers standard: 1) Loyalty 2)
Additional Compensation Arrangements 3) Responsibilities of Supervisors
8. 3 ethical responsibilities under investment analysis, recommendations and
actions standard: 1) Diligence & reasonable basis 2) Communication with clients
& prospective clients 3) Record retention
9. 3 ethical responsibilities under conflicts of interest standard: 1) Disclosure
of conflicts 2) Priority of transactions 3) referral fees
Integrity of Capital Markets 3) Duties to clients 4) Duty to employers 5) Investment
Analysis, Recommendations & Actions 6) Conflict of Interest
PIDDIC
2. 4 Ethical Responsibilities Under Professionalism Standard: 1.) Knowledge of
the Law 2) Independence & Objectivity 3) Misrepresentation 4.) Misconduct
KIMM
3. 2 Ethical Responsibilities Under Integrity of Capital Markets Standard: 1.)
Material Non Public Information 2) Market Manipulation
MM
4. 5 Ethical Responsibilities Under Duties To Clients Standard: 1) Loyalty, Pru-
dence & Care 2) Fair Dealing 3) Suitability 4) Performance Presentation 5) Preser-
vation of Confidentiality
5. Suitability- When members & candidates are in an advisory relationship with
clients they must:: 1) Inquire into a client's or prospect's investment experienece,
risk/return objectives & financial constraints BEFORE making a recommendation or
taking action.
2) Determine investing is suitable to client's financial situation & consistent with the
client's written objectives, mandates & constraints BEFORE making recommenda-
tion or taking action.
3) Judge suitability of investment in context of WHOLE portfolio.
6. When can members break confidentiality with clients (hint 3 things): 1)
known information concerns illegal activities by the client or prospect
, 2) Disclosure required by law
3) Client or prospect permits disclosure of information
7. 3 Ethical responsibilities under duties to employers standard: 1) Loyalty 2)
Additional Compensation Arrangements 3) Responsibilities of Supervisors
8. 3 ethical responsibilities under investment analysis, recommendations and
actions standard: 1) Diligence & reasonable basis 2) Communication with clients
& prospective clients 3) Record retention
9. 3 ethical responsibilities under conflicts of interest standard: 1) Disclosure
of conflicts 2) Priority of transactions 3) referral fees
