Which of the following can be found in Standard V?
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A. B. C. D. E.C
Standard V states that members shall not make any statements that misrepresent the investment performance that they or their firms have accomplished or can reasonably be expected to achieve.
Standard V of the CFA Institute Code of Ethics and Standards of Professional Conduct is titled "Investment Analysis, Recommendations, and Actions." It outlines the ethical responsibilities and professional conduct expected of CFA charterholders and candidates when engaging in investment analysis, making investment recommendations, and taking investment actions. Among the options provided, the following can be found in Standard V:
C. Members shall not misrepresent investment performance.
This statement highlights the importance of providing accurate and truthful information about investment performance. CFA charterholders and candidates must not mislead clients, employers, or the public regarding the past, current, or potential performance of an investment. They should accurately represent the performance metrics, such as returns, benchmarks, or risk measures, and avoid any deceptive practices.
D. Members shall exercise diligence and thoroughness in making investment recommendations or in taking investment actions.
This statement emphasizes the need for CFA charterholders and candidates to exercise due care and diligence when making investment recommendations or taking investment actions. They should conduct thorough analysis, research, and due diligence before providing any investment advice or making investment decisions. By doing so, they demonstrate professionalism and strive to act in the best interest of their clients.
A. Members shall not participate in any professional conduct involving dishonesty, fraud, deceit, etc.
While this statement pertains to ethical conduct, it is not specific to Standard V. It is a broader requirement encompassing all aspects of professional conduct for CFA charterholders and candidates.
B. Members shall deliver a copy of the Code to their employer.
This requirement is not specifically mentioned in Standard V. However, it is a general requirement for CFA charterholders and candidates to make their employers aware of the existence of the CFA Institute Code of Ethics and Standards of Professional Conduct. The purpose is to ensure that the employers are aware of the ethical standards expected from CFA charterholders and candidates and can support their adherence to these standards.
E. Members shall not knowingly participate or assist in any violation of laws, rules, or regulations.
While this statement is an important ethical obligation, it is not specific to Standard V. It is a general requirement for CFA charterholders and candidates to refrain from participating in or assisting any violation of laws, rules, or regulations applicable to their professional activities. This obligation extends beyond the scope of investment analysis, recommendations, and actions.
In summary, the statements that can be found in Standard V are:
It is essential for CFA charterholders and candidates to be familiar with and adhere to all the standards outlined in the CFA Institute Code of Ethics and Standards of Professional Conduct to maintain the highest level of professionalism and ethical conduct in the investment industry.