Seeing is believing!

Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.

Subject 3. Quanthouse PDF Download
This case depicts violations or possible violations of CFA Institute's Code and Standards.

Standard III (B) - Fair Dealing: Not violated

You can use different investment models when dealing with different types of clients.

High networth individual clients are different from institutional clients.

You don't have to disclose all available investment models when working with different types of clients.

Standard V (A) - Diligence and Reasonable Basis

You need to review and test different components of a model with the same frequency, and at a minimum, follow your firm's guidelines.

Standard I (A) - Knowledge of the Law

If you find something illegal or unethical, the first step is to talk to a supervisor or the firm's compliance department. If it is still not successful, step away and dissociate from the activity. However, you are not "required" to report it to the government or CFA Institute.

Standard III (A) - Loyalty, Prudence and Care

If you find an error in your report, model, recommendation, etc, fix it immediately, for the best interest of clients.

Standard I (C) - Misrepresentation

You must not make any misrepresentations relating to investment analysis, recommendations, actions, etc.

Standard IV (A) - Loyalty

You can do similar work in your spare time. If you need to use your company's resources, get compensated, or compete against your company, you will need to disclose and obtain written permissions.

Standard III (D) - Performance Presentation

Both actual and simulated results are allowed as long as they are clearly disclosed.

Learning Outcome Statements

evaluate practices, policies, and conduct relative to the CFA Institute Code of Ethics and Standards of Professional Conduct;

explain how the practices, policies, and conduct do or do not violate the CFA Institute Code of Ethics and Standards of Professional Conduct.

CFA® 2023 Level II Curriculum, Volume 6, Module 49

User Contributed Comments 1

User Comment
msanderson Where is the case
You need to log in first to add your comment.
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

My Own Flashcard

No flashcard found. Add a private flashcard for the subject.