Standard I deals with ________.
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A. B. C. D. E. F. G. H.Explanation
Standard I deals with Fundamental Responsibilities. Standard II (A) deals with Use of Professional Designation. Standard II (B) deals with Professional
Misconduct. Standard II (C) deals with Plagiarism. Standard III (A) deals with the Obligation to Inform Employer of Codes and Standards. Standard III (B) deals with the Duty to Employer. Standard III (C) deals with Disclosure of Conflicts to Employer.
Standard I of the CFA® Institute Code of Ethics and Standards of Professional Conduct addresses the "Professionalism" aspect of the code. It outlines the fundamental responsibilities that CFA® charterholders and candidates have towards clients, employers, colleagues, and the overall financial market.
Among the given options, the most appropriate answer is "F. Fundamental Responsibilities."
The standard focuses on establishing and maintaining professional competence, integrity, and ethical conduct in the investment profession. It sets forth several key obligations for CFA® charterholders and candidates:
Knowledge and Competence: CFA® professionals must continually develop their professional knowledge and skills, staying updated with current industry practices and standards. They should strive to maintain a high level of expertise and demonstrate their competence in their professional activities.
Integrity of Capital Markets: CFA® professionals must work towards promoting and maintaining the integrity of the capital markets. They should strive to create an environment that is fair, transparent, and free from any fraudulent activities, market manipulation, or insider trading.
Independence and Objectivity: CFA® professionals must maintain their independence and objectivity when providing investment advice or making investment decisions. They should avoid any conflicts of interest that could compromise their professional judgment.
Duties to Clients and Prospective Clients: CFA® professionals must act in the best interests of their clients and exercise their professional duties with care, diligence, and loyalty. They should put their clients' interests ahead of their own and disclose any potential conflicts of interest.
Investment Analysis and Recommendations: CFA® professionals should ensure that their investment analysis and recommendations are based on thorough research, diligent investigation, and accurate information. They should provide fair and unbiased assessments, taking into account the specific needs and objectives of their clients.
Conflicts of Interest: CFA® professionals must disclose any conflicts of interest to their clients or employers and take appropriate steps to manage or mitigate these conflicts. They should avoid situations where their personal or financial interests could compromise their professional judgment.
It is important to note that while the other options mentioned in the question, such as "B. Duty to Employer," "G. Disclosure of Conflicts to Employer," and "C. Obligation to Inform Employer of Code and Standards," are relevant aspects of the CFA® Institute Code of Ethics and Standards of Professional Conduct, they are not directly addressed under Standard I. Therefore, the most accurate answer is "F. Fundamental Responsibilities."