Ethics

Question 1

9 sections of GIPS

Answer 1

0. Fundamentals of Compliance. 1. Input Data. 2. Calculation Methodology. 3. Composite Construction. 4. Disclosures. 5. Presentation and Reporting. 6. Real Estate. 7. Private Equity. 8. Wrap Fee/Separately Managed Account (SMA) Portfolios.

Question 2

2 primary principles of the CFA Institute Rules of Procedure for Proceedings

Answer 2

The two principles of the Rules of Procedure for Proceedings Related to Professional Conduct are confidentiality of proceedings and fair process to the member and candidate.

Question 3

Code of Ethics

Answer 3

• Act with integrity, competence, diligence, respect, and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and other participants in the global capital markets.
• Place the integrity of the investment profession and the interests of clients above their own personal interests.
• Use reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities.
• Practice and encourage others to practice in a professional and ethical manner that will reflect credit on themselves and the profession.
• Promote the integrity and viability of the global capital markets for the ultimate benefit of society.
• Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.

Question 4

Recommended procedures for fair dealing

Answer 4

• Limit number of people who know about the recommendation
• Shorten time between decision, dissemination
• Publish personal pre-dissemination guidelines
• Maintain list of clients and holdings
• Disseminate new or changed recommendations simultaneously
• Disclose trade allocation procedures in writing
• Disclose level of service available

Question 5

7 Standards of Professional Conduct

Answer 5

1. Professionalism
2. Integrity of Capital Markets
3. Duties to Clients
4. Duties to Employers
5. Investment Analysis, Recommendations, and Actions
6. Conflicts of Interest
7. Responsibilities as a CF Institute Member or CFA Candidate

Question 6

Oversubscribed IPO

Answer 6

Investors have requested more shares than the issuer is offering