CFAspace CFA Level I Ethical and Professional Standards Part 1 Introduction CFA Lecturer: Julie He The Courses Provided by APF Academy of Professional

CFAspace

CFA Level I Ethical and Professional Standards

Part 1 Introduction

CFA Lecturer: Julie He

The Courses Provided by APFAcademy of Professional Financial 专业金融学院

Contents

1

2

Brief introduction of Ethic part in CFA exam

Learning outcome statement 1 (Code & Standards part)

Academy of Professional Financial 专业金融学院Copyright © CFAspace.com


Ethical and Professional Standards part is 15% of Level I 18/120 each session in the exam

Every question is a small case, tricky ,detail-oriented, thus, good case study skill is needed

Standards of Practice handbook is an important reference book during the study procedure

Practice makes perfect




Key parts:1.Code of Ethics and Standards of Professional Conduct2.Global Investment Performance Standards (GIPS)

Learning Outcome Statement 1

LOS 1 .a: Describe the structure of the CFA Institute Professional Conduct Program and the process for the enforcement of the Code and Standards.


The PCP (Professional Conduct Program) is consisted of:

CFA Institute Board of GovernorsDRC (Disciplinary Review Committee): volunteer committee of CFA charterholders

Their mission is to lead the investment profession globally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society


LOS 1 .a: Describe the structure of the CFA Institute Professional Conduct Program and the process for the enforcement of the Code and Standards.

1. Why an inquiry is prompted Self-disclosure Written complaints Evidence from public sources A report by a CFA exam proctor Analysis exam and monitor online

(social media)

2. Inquiry has begun, Professional Conduct Staff would Request explanation Interview Collect documents and records

3. Then, the Designated Officer may decide No sanctions Issue a cautionary letter Proposes a disciplinary sanction



LOS 1.b: State the six components of the Code of Ethics and the seven Standards of Professional Conduct.LOS 1.c: Explain the ethical responsibilities required by the Code and Standards, including the sub-sections of each Standard.

6 components of the Code of Ethics

Contents Key point*Act with integrity,competence,diligence,respect and in an ethical manner Action style*Place the integrity of the investment profession and the interests of clients above own interests

Action sequence

*Use reasonable care and exercise independent professional judgment Judgment*Practice and encourage others to practice in a professional and ethical manner

Practice

*Uphold capital market rules and regulations Uphold*Keep and improve professional competence Competence

7 Standards of Professional Conduct

^Professionalism Knowledge&Attitude^Integrity of capital market Material nonpublic info. & Market

manipulation^Duties of clients Attitude,

suitability,presentation,confidentality^Duties to employers Loyalty, compensation and

responsibility^Investment analysis, recommendations and actions Basis,communication,record^Conflict of interest Disclosure, priority and referral fees^Responsibilities as a member or candidate Conduct, reference


CFAspace

Documents

CFAspace CFA Level I Ethical and Professional Standards Part 1 Introduction CFA Lecturer: Julie He The Courses Provided by APF Academy of Professional