StickyKurtosis
Kurtosis refers to the measurement of the degree to which a given distribution is more or less ‘peaked’ relative to the normal distribution. The concept of kurtosis is very useful in decision-making. In this regard, we have 3 categories of…
Ethics Application
At the end of this reading, you should be able to: LOS 59a: evaluate practices, policies, and conduct relative to the CFA Institute Code of Ethics and Standards of Professional Conduct; LOS 60b: explain how the practices, policies, and conduct…
Standard VII(A) – Conduct as participants in CFA Institute programs
Members and Candidates must not participate in any activity that jeopardizes CFA Institute’s or the CFA designation’s reputation, integrity, or security of CFA Institute programs. Application 1: Writing After Exam Period End Fiona King, a CFA Level III candidate, took…
Standard VI(C) – Referral Fees
Members and Candidates must disclose any remuneration, consideration, or advantages received from or provided to anyone to recommend products or services to their employer, clients, and prospective clients, as applicable. Application 1: Disclosure of Interdepartmental Referral Agreements Britney Sullivan works…
Standard VI(B) – Priority of transactions
Client and employer investment transactions must take precedence over investment transactions in which a member or candidate is the beneficial owner. Application 1: Family Account as Equals Gia Davies, a senior trader at InvestCorp Brokerage, has recently helped her sister…
Standard V(C) – Record Retention
Members and Candidates must create and keep relevant documents to support their investment analysis, suggestions, actions, and other investment-related discussions with customers and prospects. Application: Records of The Firm Scott Garcia is the head of quantitative research at Green Point…
Standard VI(A) – Disclosure of Conflicts
All issues that could reasonably be expected to compromise their independence and objectivity or conflict with their respective duties to their clients, prospective clients, and employer must be disclosed fully and fairly by Members and Candidates. Application 1: Personal Stock…
Standard V(B) – Communication with Clients and Prospective Clients
Members and Candidates must: Immediately disclose to customers and prospective clients the basic format and broad principles of the investing procedures they employ to analyze investments, choose securities and construct portfolios, as well as any modifications that may materially influence…
Standard V(A) – Diligence and Reasonable Basis
Members and Candidates must: Analyze investments, give investment recommendations, and take investment activities with diligence, independence, and completeness. Have a reasonable and adequate basis for any investment analysis, recommendation, or action, backed by suitable research and investigation. Diligence and Reasonable…
Standard IV(C) – Responsibilities of Supervisors
Members and Candidates are responsible for ensuring that anybody under their supervision or responsibility follows all applicable laws, rules, regulations, and the CFA Institute Code and Standards. Application 1: Supervising Research Activities Joy Silverstone, CFA, is the head of research…
