Standard II(B) – Market Manipulation
Standard II(B) – Market Manipulation dictates that members refrain from any activity that will fraudulently manipulate volumes of trading and/or causes a distortion of securities pricing. Compliance Two key attributes of market manipulation are information-based and transaction-based. Information-based manipulation involves…
Standard III(A) – Loyalty, Prudence, and Care
III. Duties to Clients and Prospective Clients Standard III addresses client loyalty, discretion, and care; fair dealing; suitability; performance presentation; and maintaining confidentiality. Investment professionals are obligated to put the interests of their clients before that of their organization or…
Standard III(B) – Fair Dealing
Standard III(B) – Fair Dealing indicates that CFA members must take advice and/or take action with all clients in a reasonable and objective manner. Compliance Standard III(B) – Fair Dealing urges members to treat all parties fairly to uphold the…
Standard III(C) – Suitability
Standard III(C) – Suitability refers to providing recommendations and transactions that align with a client’s willingness and ability. Compliance The essence of Standard III(C) – Suitability lies in the notion that a client’s objectives and financial circumstances are unique. For…
Standard III(D) – Performance Presentation
Standard III(D) – Performance Presentation obliges CFA members to make sure communication about investment performance is fair, accurate, and complete. Compliance Similar to Standard I(C) – Misrepresentation, Standard III(D) – Performance Presentation insists that information provided by investment professionals be…
Standard IV(A) – Loyalty
IV. Duties to Employers Standard IV outlines basic responsibilities by investment professionals for their employers. Standard IV(A) – Loyalty Standard IV(A) – Loyalty requires CFA members from behaving in a way that would negatively impact their employer’s reputation or deprive…
Standard IV(B) – Additional Compensation Arrangements
Standard IV(B) – Additional Compensation Arrangements obliges members not to accept gifts, additional compensation, or consideration that competes with the interests of an employer. Compliance Standard IV(B) – Additional Compensation Arrangements requires members to obtain written permission before accepting gifts…
Standard IV(C) – Responsibilities of Supervisors
Standard IV(C) – Responsibilities of Supervisors indicates that supervisors must make every effort to ensure subordinates comply with appropriate laws, firm policies, and the Code of Standards.
Standard V(A) – Diligence and Reasonable Basis
V. Investment Analysis, Recommendations, and Action Standard V outlines the responsibility of investment professionals regarding the performance of due diligence before making recommendations to clients.
Standard V(B) – Communication with Clients and Prospective Clients
Standard V(B) – Communication with Clients and Prospective Clients specifies that members must disclose the limitations and risks associated with investment recommendations and activities.
