Topic Quiz: Ethical and Professional Standards

According to Standard V(A) Diligence and Reasonable Basis, which of the following is a recommended criterion for a firm to judge the quality of third-party research?

Under Standard V(B) Communication with Clients and Prospective Clients, members must distinguish between which two elements in their investment analyses?

If no regulatory standards or firm policies are in place, what is the minimum record retention period recommended by the Code and Standards?

Regarding Standard VI(A) Disclosure of Conflicts, which of the following is the most common conflict requiring disclosure?

According to Standard VI(B) Priority of Transactions, which transactions take priority?

What is a recommended procedure for firms to address conflicts created by personal investing under Standard VI(B)?

Under Standard VI(C) Referral Fees, to whom must members disclose compensation received for referrals?

Which of the following activities is a violation of Standard VII(A) Conduct as Participants in CFA Institute Programs?

Regarding Standard VII(B) Reference to CFA Institute, which statement is acceptable?

What is the primary purpose of the Global Investment Performance Standards (GIPS)?

For a firm to claim compliance with GIPS, the compliance must be:

In the context of GIPS, what is a 'composite'?

Under GIPS, if a firm chooses to pursue verification, who must perform it?

According to GIPS, can a firm exclude terminated accounts from historical composites?

Standard V(B) states that expectations based on statistical modeling and analysis are:

Which of the following best describes the 'definition of the firm' for GIPS compliance?

Regarding Standard V(C) Record Retention, records supporting investment analyses are the property of:

If a member discovers illegal activity at their firm (e.g., overcharging clients) and the firm refuses to remedy it, what must the member do according to Ethics Application Case 1 for Standard I(A)?

In Ethics Application Case 3 for Standard I(C) Misrepresentation, a CEO posts a joke price of 420 dollars for taking a company private. This is a violation because:

According to Ethics Application Case 1 for Standard II(A), if a member overhears a friend's phone conversation and infers a takeover is imminent, trading on this information is:

Under Standard III(A) Loyalty, Prudence, and Care, can a member 'opt out' of the Standards via a client agreement?

In Ethics Application Case 1 for Standard III(B) Fair Dealing, is it a violation to offer a premium service with weekly updates for an additional fee?

According to Standard IV(C) Responsibilities of Supervisors, if a supervisor knowingly cannot enforce compliance because the firm has no policies, they should:

In Ethics Application Case 1 for Standard V(B), if a firm changes its fee calculation method, when must it inform clients?

Standard VI(A) requires disclosure of board service because:

Under Standard V(A), how should the degree of diligence be determined?

Regarding Standard VI(B), can a member trade for their own account?

Standard VII(A) prohibits candidates from:

In the context of GIPS, what is 'discretion'?

Which of the following is a requirement for maintaining active membership in CFA Institute according to Standard VII(B)?

A member violates Standard I(B) Independence and Objectivity by:

Under Standard V(A), when using quantitative models, members must:

Standard VI(C) Referral Fees requires disclosure of the nature and:

Which of the following acts reflects adversely on professional integrity under Standard I(D) Misconduct?

Standard II(B) Market Manipulation includes:

Under Standard III(E) Preservation of Confidentiality, when can a member share confidential client information?

In Ethics Application Case 3 for Standard IV(A) Loyalty, a member violates the Standard by:

Regarding Standard V(A) Diligence and Reasonable Basis, relying on a third-party's research without any review is:

Under Standard VI(B), family member accounts that are client accounts should be:

GIPS standards for firms consist of how many sections?

Standard IV(B) Additional Compensation Arrangements requires members to:

When using a 'composite' for GIPS reporting, a firm must include:

Standard V(B) requires members to communicate significant changes in:

In Ethics Application Case 1 for Standard VI(C), a member invites clients who referred accounts to lavish parties. This is a violation because:

A member who changes firms must re-create analysis documentation at the new firm using:

Standard V(A) states that the level of research needed to satisfy due diligence will:

According to GIPS, who states that they 'endorse' GIPS but cannot claim compliance?

Standard VI(B) suggests that with respect to personal trades, members must not:

Under Standard VII(A), members who volunteer in the CFA Program may not:

If a member fails to pay CFA Institute membership dues annually, they: