115 CFA
File: Reading 3 - Professionalism - I(D) Misconduct

Professionalism - I(D) Misconduct


a. demonstrate the application of the Code of Ethics and Standards of Professional Conduct to situations of issues involving issues of personal integrity

Flash cards

How does Standard I(D) differ from Standard I(A)?
Standard I(A) is about the obligation to comply with laws and regulations, whereas I(D) is about personal behavior that may reflect poorly on the profession.

What kinds of personal conduct are prohibited by Standard I(D)?
Any act that involves lying, cheating, stealing, or other dishonest conduct. If the act reflects poorly on the member's professional activities, it is a violation of I(D).

Does Standard I(D) also cover poor personal conduct, or only professional conduct?
Personal conduct is not covered, Standard I(D) only covers professional conduct.

If you are charged with possession of marijuana, and it is a state misdemeanor, three times in the last year, is it a violation of Standard I(D)?
Although I(D) does not cover personal conduct, the fact that you've broken the law multiple times in the last year would be considered a violation.

b. distinguish between conduct that conforms to the Code and Standards and conduct that violates the Code and Standards

Flash cards

What is the primary directive of SoPC, Standard I, sub-section D?
Members and Candidates must not engage in any professional conduct involving dishonesty, fraud, or deceit, or commit any act that reflects adversely on their professional reputations, integrity, or competence.

What does Standard I(D) say about the CFA?
Members and candidates shall not compromise the integrity of the CFA designation, or the integrity or validity of the CFA examinations.

c. recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct

Flash cards

What are the recommendations to encourage compliance with Standard I(D)?
1. Adopt a Code of Ethics to which every employee must subscribe
2. Disseminate to employees a list of potential violations and associated disciplinary sanctions
3. Conduct background checks on potential employees to ensure they are of good character

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