CFA Level I · CFA Level I Exam · Code of Ethics and Standards of Professional Conduct
Which statement about the CFA Institute Asset Manager Code is most accurate?
The Asset Manager Code applies to firms, whereas the Code and Standards are aimed at individual investment professionals who are members or candidates. It gives practical guidelines in six areas and helps asset managers comply with regulations requiring codes of ethics.
- AIt replaces the Code and Standards for individual members
- BIt applies to firms, whereas the Code and Standards target individualsCorrect
- CIt applies only to candidates for the CFA designation
Explanation
The Code and Standards are aimed at individual members and candidates, while the Asset Manager Code applies to firms and gives guidelines in six areas, including loyalty to clients, trading and disclosure. It does not replace the Code and Standards.
Did you get it right without looking?
One question tells you little. A timed set on Code of Ethics and Standards of Professional Conduct shows your real accuracy, how long you take and where you lose marks.
More Code of Ethics and Standards of Professional Conduct questions
- Under the CFA Institute Code and Standards, the sanctions that CFA Institute may impose on a member or candidate for a violation most likely…
- A portfolio manager publishes an unfounded rumor online that a rival bank is nearing insolvency, intending to push down the bank's share pri…
- Which statement about who must comply with the Code and Standards is most accurate?
- A member lives in Country X, whose securities law is less restrictive than the Code and Standards on a client-disclosure matter. Her clients…
- A candidate learns that a colleague at his firm is routinely violating a securities regulation that applies to the firm's activities. The ca…
- Standard IV(A) Loyalty requires members and candidates to act for the benefit of their employer. An analyst is preparing to leave her firm t…