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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 Statementsevaluate 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
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|msanderson||Where is the case|
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.
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