1. CFAspace CFA Level I Ethical and Professional Standards Part 1 Introduction CFA Lecturer: Julie He The Courses Provided by APF Academy of Professional Financial 专业金融学院

2. Contents 12 Brief introduction of Ethic part in CFA exam Learning outcome statement 1 (Code & Standards part) Academy of Professional Financial 专业金融学院 Copyright © CFAspace.com

3. Brief introduction of Ethic part in CFA exam  Ethical and Professional Standards part is 15% of Level I 18/120 each session in the exam  Every question is a small case, tricky,detail-oriented, thus, good case study skill is needed  Standards of Practice handbook is an important reference book during the study procedure  Practice makes perfect Academy of Professional Financial 专业金融学院 Copyright © CFAspace.com

4. Brief introduction of Ethic part in CFA exam Academy of Professional Financial 专业金融学院 Copyright © CFAspace.com Key parts: 1.Code of Ethics and Standards of Professional Conduct 2.Global Investment Performance Standards (GIPS)

5. Learning Outcome Statement 1 LOS 1.a: Describe the structure of the CFA Institute Professional Conduct Program and the process for the enforcement of the Code and Standards. Academy of Professional Financial 专业金融学院 Copyright © CFAspace.com The PCP (Professional Conduct Program) is consisted of:  CFA Institute Board of Governors  DRC (Disciplinary Review Committee): volunteer committee of CFA charterholders Their mission is to lead the investment profession globally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society

6. Learning Outcome Statement 1 LOS 1.a: Describe the structure of the CFA Institute Professional Conduct Program and the process for the enforcement of the Code and Standards. Basic structure of CFA Institute Professional Conduct Program  CFA Institute Bylaws  Rules of Procedure Basic principles  Fairness of the process to member and candidates  Confidentiality of the proceedings The Disciplinary Review Committee of the CFA Institute Board of Governors have responsibility for the enforcement Academy of Professional Financial 专业金融学院 Copyright © CFAspace.com

7. Learning Outcome Statement 1 LOS 1.a: Describe the structure of the CFA Institute Professional Conduct Program and the process for the enforcement of the Code and Standards. 1. Why an inquiry is prompted  Self-disclosure  Written complaints  Evidence from public sources  A report by a CFA exam proctor  Analysis exam and monitor online (social media) 2. Inquiry has begun, Professional Conduct Staff would  Request explanation  Interview  Collect documents and records 3. Then, the Designated Officer may decide  No sanctions  Issue a cautionary letter  Proposes a disciplinary sanction Academy of Professional Financial 专业金融学院 Copyright © CFAspace.com

8. Learning Outcome Statement 1 LOS 1.b: State the six components of the Code of Ethics and the seven Standards of Professional Conduct. LOS 1.c: Explain the ethical responsibilities required by the Code and Standards, including the sub-sections of each Standard. 6 components of the Code of Ethics ContentsKey point *Act with integrity,competence,diligence,respect and in an ethical mannerAction style *Place the integrity of the investment profession and the interests of clients above own interests Action sequence *Use reasonable care and exercise independent professional judgmentJudgment *Practice and encourage others to practice in a professional and ethical manner Practice *Uphold capital market rules and regulationsUphold *Keep and improve professional competenceCompetence 7 Standards of Professional Conduct ^ProfessionalismKnowledge&Attitude ^Integrity of capital marketMaterial nonpublic info. & Market manipulation ^Duties of clientsAttitude, suitability,presentation,confidentality ^Duties to employersLoyalty, compensation and responsibility ^Investment analysis, recommendations and actionsBasis,communication,record ^Conflict of interestDisclosure, priority and referral fees ^Responsibilities as a member or candidateConduct, reference Academy of Professional Financial 专业金融学院 Copyright © CFAspace.com

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