Page 10 - FINAL CFA II SLIDES JUNE 2019 DAY 1

LOS 1b: Explain the ethical responsibilities READINGS 1 AND 2: CFA INSTITUTE CODE OF ETHICS AND STANDARDS OF
required by the Code and Standards, including the PROFESSIONAL CONDUCT GUIDANCE FOR STANDARDS I–VII
sub-sections of each Standard.

I. PROFESSIONALISM
A. Knowledge of the Law (and regulations, including the Code of Ethics and Standards of Professional Conduct). In any conflict, follow the
stricter one. Must not knowingly participate or assist in any violation of laws, rules, or regulations and must disassociate yourself!

B. Independence and Objectivity: Use reasonable care and judgment to maintain independence and objectivity in your professional
activities. Do not offer, solicit, or accept any gift, benefit, compensation, or consideration that reasonably could be expected to
compromise your or another’s independence and objectivity.
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C. Misrepresentation: Must not knowingly make any misrepresentations relating to investment analysis, recommendations, actions, or
other professional activities.

D. Misconduct: Do not engage in any professional conduct involving dishonesty, fraud, or deceit or commit any act that reflects adversely
on your professional reputation, integrity, or competence.

II. INTEGRITY OF CAPITAL MARKETS
A. Material Non-public Information: If you hold info that could affect the value of an investment do not act or cause others to act on it!

B. Market Manipulation: Must not engage in practices that distort prices or artificially inflate trading volume with the intent to mislead!