Page 18 - FINAL CFA SLIDES JUNE 2019 DAY 1

Code of Ethics and Standards of Professional Conduct/
Guidance for Standards I - Vii

LOS 2.c: Explain the ethical responsibilities required by the Code and Standards, including the sub-sections of each Standard.

V. INVESTMENT ANALYSIS, RECOMMENDATIONS, AND ACTIONS (ARA)

1
A. Diligence and Reasonable Basis:
1. Exercise diligence, independence, and thoroughness in ARA.

2. Have a reasonable and adequate basis, supported by appropriate research and investigation, for ARA.

B. Communication with Clients and Prospective Clients:
1. Disclose the investment methodology used to ARA and promptly disclose any changes!
2. Disclose significant limitations and risks associated with the investment process.

3. Use reasonable judgment in identifying which factors are important to ARA and include those in all communications.
4. Distinguish between fact and opinion in the presentation ARA.

C. Record Retention: Keep this to support ARA, and other investment-related communications.