Tutorial 6 Questions – CFAI Code of Ethics

[Readings: CFAI Handbook (Ed.11th); Ch17]

Discuss whether the following examples violate the CFAI Codes of Ethics and Standards
of Professional Conduct, and suggest possible remedies to the situation.
[Note: All examples are taken from the CFAI Standard of Practice Handbook]

Standard I(A) – Professionalism: Knowledge of Law

Q.1

Standard I(B) – Professionalism: Independence and Objectivity

Q.2

1
Standard I(C) – Professionalism: Misrepresentation
Q.3

2
Standard I(D) – Professionalism: Misconduct
Q.4

Standard II(A) – Integrity of Capital Markets: Material Nonpublic Information

Q.5

3
Standard II(B) – Integrity of Capital Markets: Market Manipulation
Q.6

Standard III(A) – Duties to Clients: Loyalty, Prudence, and Care

Q.7

Standard III(B) – Duties to Clients: Fair Dealing

Q.8

4
Standard III(C) – Duties to Clients: Suitability
Q.9

Standard III(D) – Performance Presentation

Q.10

5
Standard III(E) – Duties to Clients: Preservation of Confidentiality
Q.11

Standard IV(A) – Duties to Employers: Loyalty

Q.12

6
Standard IV(B) – Duties to Employers: Additional Compensation Arrangement
Q.13

Standard IV(C) – Duties to Employers: Responsibilities of Supervisors

Q.14

7
Standard V(A) – Investment Analysis, Recommendations, and Actions:
Diligence and Reasonable Basis
Q.15

8
Standard V(B) – Investment Analysis, Recommendations, and Actions:
Communicating with Clients and Prospective Clients
Q.16

Standard V(C) – Investment Analysis, Recommendations, and Actions: Record

Retention
Q.17

9
Standard VI(A) – Conflicts of Interest: Disclosure of Conflicts
Q.18

Standard VI(B) – Conflicts of Interest: Priority of Transactions

Q.19

10
Standard VI(C) – Conflicts of Interest: Referral Fees
Q.20

Standard VII(A) – Responsibilities as a CFA Institute Member or CFA Candidate:

Conduct as Participants in the CFA Institute Programs
Q.21

11
Standard VII(B) – Responsibilities as a CFA Institute Member or CFA Candidate:
Reference to CFA Institute, the CFA Designation, and the CFA Program
Q.22

12