Page 19 - FINAL CFA II SLIDES JUNE 2019 DAY 1

MODULE 2.2: READINGS 1 AND 2: CFA INSTITUTE CODE OF ETHICS AND STANDARDS OF
STANDARDS I(C) AND I(D) PROFESSIONAL CONDUCT GUIDANCE FOR STANDARDS I–VII

I. PROFESSIONALISM

D. Misconduct

No unethical behavior -in all aspects your lives. Do not abuse CFA Institute’s Professional Conduct Program by seeking enforcement
of this Standard to settle personal, political, or other disputes that are not related to professional ethics.

Recommended Procedures for Compliance (firms t):
• Develop and adopt a code of ethics and make clear that unethical behavior will not be tolerated.
• Give employees a list of potential violations and sanctions, including dismissal.
• Check references of potential employees. 1

Vignette 1: Simon Sasserman is a trust investment officer at a bank in a small affluent town. He enjoys lunching every day with friends at the country
club, where his clients have observed him having numerous drinks. Back at work after lunch, he clearly is intoxicated while making investment
decisions. His colleagues make a point of handling any business with Sasserman in the morning because they distrust his judgment after lunch.

Anlaysis:
• Sasserman’s excessive drinking at lunch and subsequent intoxication at work constitute a violation of Standard I(D) because this conduct
has raised questions about his professionalism and competence.
• His behavior thus reflects poorly on him, his employer, and the investment

Action/s?

Review examples 2 - 4