# 3

A. Loyalty, Prudence, and Car

B. Fair Dealing   

C. Suitability

D. Performance Presentation

E. Preservation of Confidentiality

#4 

A. Loyalty

B. Additional Compensation Arrangements

C. Responsibilities of Supervisors

# 5 

A. Diligence and Reasonable Basis

B. Communication and Prospective Clients

C. Record retention

# 6

Disclosure of Interest

A. Disclosure of Conflicts

B. Priority of transactions

C. Referral Fees

Responsibilities as a CFA Institute Member or CFA Candidate

#7

A. Conduct as Members and Candidates in the CFA Program

B. Reference to CFA Institute, the CFA Designation, and the CFA Program

"In the past, the investment community had great difficulty making meaningful comparisons on the basis of accurate investment performance data." (CFA)

There were too many different and sometimes inaccurate ways to present performance and other data.

Knowledge of the Law

I. Professionalism

A.

Members and candidates must understand and comply with the law. "In and event of a conflict, members and candidates must comply with the more strict law, rule, or regulation." (CFA)

I: Professionalism

B.

"members and candidates must use reasonable care and judgement to acheive and maintain independance and objectivity in their professional activities. Members and candidates must not offer, solicit, or accept an gift, benefit, compensation, or consideration that reasonably could be expected to comprise their own or another's independance and objectivity" (CFA)

I: Professionalism

D.

"members and candidates must not engage in any professional conduct involving dishonesty, fraud, or deceit or commit any act that refelcts adversely on their professional reputation, integrity, or competence" (CFA)

2: Integrity of Capital Markets

A.

"Memebers and Candidates who possess material nonpublic information that could affect the value of an investment must not act or cause others to act on the information" (CFA)

2: Integrity to Capital Markets

B.

"Members and Candidates must not engage in practives that distort prices or artificially inflate trading voumes with the intent to mislead market participation" (CFA)

3: Duties to Cients

A.

"Members and Candidates have a duty of loyalty to their clients and must act with reasonable care and exercise prudent judgement. Members and candidates must act for the benefit of their clients and place their clients interest before their employer's or their own interests. In relationships with clients, members and candidates must determine applicable fiduciary duty and must comply with such duty to persons and interests to whom it is owed." (CFA)

3: Duties to Clients

B.

"Members and candidates must deal fairly and objectively with all clients when providing investment analysis, making investment recommendations, taking investment action, or engaging in other professional activities" (CFA)

3: Duties to Clients

C.

1. When Members and candidates arae in an advisory relationship with a client, they must:

Inquire upon clients risk, return objectives, and financial constraints prior to making investment decisions.

2. determine investments are suitable to clients objectives

3: Duties To Clients

D.

"When communicating investment performance information, members and candidates must make reasonable efforts to ensure that it is fair, accurate, and complete." (CFA)

3: Duties to Clients

E.

"Members and candidates must keep information condiential about current, former, and prospective clients unless:

1. The information concerns illegal activities on the part of the client or prospective client.

2. Disclosure is require by law, or

3. The client or prospective client permits disclosure of the information." (CFA)

Loyalty

4: Duties to employers

A.

"In matters related to their employment, members and candidates must act for the benefit of their employer and not deprive their employer of the advantage of their skills and abilities, divulge confidential information, or otherwise cause harm to their employer. " (CFA)

4: Duties to Employer

b.

"Members and Candidates must not accept gifts, benefits, compensation, or consideration that competes with, or might reasonably be expected to create a conflict of interest with, their employers interest unless they obtain written consent from all parties involved." (CFA)

4: Duties to Employer

c.

"Members and candidates must make reasonable efforts to detect and prevent violation of applicable laws, rules, and regulations, and the code of standards by anyone subject to their supervision or authority" (CFA)

5: Investment Analysis, Recommendation, and Actions

A.

1."Exercise diligence, independance, and thoroughnes in analyzing investments, making investment recommendations, and taking investment actions.

2.Have a reasonable and adequate basis, supported by appropriate research and investigation, for any investment analysis, recommendation, or action." (CFA)

5: Investment analysis, recommendations, and actions

B.

1. "Disclose to clients and prospective clients the basic format and general principles of the investment processes used to analyze investments, select securities, and construct portfolios and must promptly disclose any changes that might materially affect those processes"

2. Use reasonable judgement in identifying which factors are important to their investment analyses, recommendations, or actions and include those factors in communications with clients and prospective clients" (CFA)

3. "Distinguish between fact and opinion in the presentations of investment analysis and recommendations" (CFA)

5: Investment, Analsis, Recommendations, and Actions

C.

"Members and candidates must develop and maintain appropriate records to support their investment analysis, recommendations, actions, and other investment-related communication with clients and prospective clients." (CFA)

Disclosure of Conflicts

6: Conflicts of Interest

A.

"Members and Candidates must make full and fair disclosure of all matters that could reasonably be expected to impair their independence and objectivity or interfere with respecitve duties to their clients, prospective clients, and employer. Members and candidates must ensure that such disclosures are prominent, are delivered in plain language, and communicate the relevant information effectively." (CFA)

5. Conflicts of Interest

B.

"Investment transactions for clients and employers must have priority over investment transactions in which a member or candidate is the beneficial owner." (CFA)

Referal Fees

5. Conflict of Interest

C.

"Members and candidates must disclose to their employer, clients, and prospective clients, as appropriate, any compensation, consideration, or benefit received from, or paid to, others for the recommendation of products or services" (CFA)

7: Responsibilities as a CFA Institute Member or CFA Candidate

a.

"Members and candidates must not engage in any conduct that comprimises the reputation or integrity of CFA institute of the CFA designation or the integrity, validity, or security of the CFA examinations." (CFA)

Refernce to CFA Institute, the CFA Designation, and the CFA Program

7: Responsibilities as a CFA Institute Member of CFA Candidate

B.

"When referring to CFA institute, CFA institue membership, the CFA designation, or candidacy in the CFA program, members and candidates must not misrepresent or exaggerate the meaning or implications of membership in CFA institute, holding the CFA designation, or candidacy in the CFA program" (CFA)