CODE OF ETHICS

Get Started. It's Free
or sign up with your email address
Rocket clouds
CODE OF ETHICS by Mind Map: CODE OF ETHICS

1. PROFESSIONALISM

1.1. Knowledge of the Law

1.1.1. comply with the more strict rule of any government/regulatory/licensing/ professional association

1.2. Independence and Objectivity

1.2.1. not offer/accept any benefit to compromise own/another’s independence & objectivity

1.3. Misrepresentation.

1.3.1. not misrepresent professional activities

1.4. Misconduct.

1.4.1. no conduct that reflects adversely on their profession

2. INTEGRITY OF CAPITAL MARKETS

2.1. Material Nonpublic Information.

2.1.1. not act on nonpublic information

2.2. Market Manipulation.

2.2.1. not mislead market participants

3. DUTIES TO CLIENTS

3.1. Loyalty, Prudence, and Care.

3.1.1. place clients’ interests before employer’s or own

3.2. Fair Dealing.

3.2.1. deal fairly with clients in professional activities

3.3. Suitability.

3.3.1. inquire into client’s objectives prior to taking action

3.3.2. Determine that investment is suitable to client’s situation before taking action

3.3.3. Judge suitability of in context of total portfolio

3.4. Performance Presentation.

3.4.1. communicate performance information accurately

3.5. Preservation of Confidentiality.

3.5.1. information about current/former/prospective clients confidential unless:

3.5.1.1. illegal

3.5.1.2. required by law

3.5.1.3. client permits

4. DUTIES TO EMPLOYERS

4.1. Loyalty.

4.1.1. must act for the benefit of employer

4.1.2. not deprive employer of your skills and abilities

4.1.3. not divulge confidential information

4.1.4. not cause harm to employer

4.2. Additional Compensation Arrangements

4.2.1. not accept compensation that might create a conflict of interest with employer

4.2.1.1. without written consent from all parties

4.3. Responsibilities of Supervisors.

4.3.1. anyone you supervise must comply with laws

5. INVESTMENT ANALYSIS, RECOMMENDATIONS, AND ACTIONS

5.1. Diligence and Reasonable Basis.

5.1.1. honest/thorough recommendations & actions supported by appropriate research

5.2. Communication with Clients and Prospective Clients.

5.2.1. Disclose to clients the investment processes & any changes

5.2.2. Disclose significant risks in investment process

5.2.3. identify factors important to their investments & communicate to clients

5.2.4. Distinguish between fact & opinion in analysis & recommendations

5.3. Record Retention.

5.3.1. maintain records of recommendations/actions/communications

6. CONFLICTS OF INTEREST

6.1. Disclosure of Conflicts.

6.1.1. plain language full disclosure of matters that could interfere with duties to client or employer

6.2. Priority of Transactions.

6.2.1. transactions for clients and employers have priority over Member's

6.3. Referral Fees

6.3.1. must disclose any benefit received for recommendations to employer or clients

7. RESPONSIBILITIES AS A CFA INSTITUTE MEMBER OR CFA CANDIDATE

7.1. Conduct as Participants in CFA Institute Programs.

7.1.1. not compromise integrity/security of the CFA Institute

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

7.2.1. not misrepresent meaning of membership/designation/candidacy in the CFA program