Ethical And Professional Standards MCQ - Ethical And Professional Standards Section 1
- A deal fairly and objectively with all the fee-paying clients when providing investment recommendations, taking investment action or engaging in other professional activities.
- B ensure that anyone under their supervision complies only with the Code and Standards.
- C not accept gifts, benefits or compensation if it creates a conflict with their employer’s interest unless they obtain written consent from all parties involved.
A is incorrect because they must deal fairly and objectively with all
clients, not just fee-paying clients. B is incorrect they must comply with
applicable laws, not just domestic laws.
Members and Candidates must reveal information when required by the
law, or when the client is involved in illegal activities.
- A who possess nonmaterial nonpublic information that could affect the value of an investment must not act or cause others to act on the information.
- B who possess material nonpublic information that could affect the value of an investment must not act or cause others to act on the information.
- C who possess nonmaterial public information that could affect the value of an investment must not act or cause others to act on the information.
