Standard III (D) deals with ________.
Click on the arrows to vote for the correct answer
A. B. C. D. E. F.E
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 (D) deals with the Disclosure of Additional Compensation Arrangements.
Standard III (D) of the CFA® Level 1 curriculum deals with the "Fundamental Responsibilities" of CFA® charterholders and candidates. This standard outlines the core principles and ethical obligations that CFA® professionals must adhere to in order to maintain the highest standards of professional conduct. The key aspects of Standard III (D) include the following:
Loyalty to Clients: CFA® professionals have a fiduciary duty to act in the best interests of their clients and must prioritize their clients' interests over their own. They should avoid conflicts of interest and fully disclose any potential conflicts that may arise.
Fair Dealing: CFA® professionals should deal fairly and objectively with clients, ensuring that they provide accurate and complete information in a timely manner. They should not engage in any deceptive, manipulative, or fraudulent practices.
Suitability: CFA® professionals must assess the suitability of investment recommendations and advice provided to clients. This involves considering the client's financial situation, investment objectives, risk tolerance, and any other relevant factors.
Performance Presentation: When presenting investment performance to clients or prospective clients, CFA® professionals must ensure that the information is fair, accurate, and not misleading. They should provide appropriate context and disclose any relevant limitations or assumptions.
Preservation of Confidentiality: CFA® professionals are obligated to maintain the confidentiality of client information unless required by law or permitted by the client. They should exercise caution in sharing confidential information and use it only for legitimate purposes.
Preservation of Independence and Objectivity: CFA® professionals should maintain independence and objectivity in their professional activities. They should avoid any activities or relationships that could compromise their ability to make impartial and unbiased decisions.
Duties to Employers: CFA® professionals have a responsibility to act in a manner that upholds the integrity and reputation of their employers. They should follow their employer's policies and procedures and inform their employer if they become aware of any violations of the Code and Standards.
In summary, Standard III (D) emphasizes the fundamental responsibilities of CFA® charterholders and candidates in areas such as loyalty to clients, fair dealing, suitability, performance presentation, confidentiality, independence, objectivity, and duties to employers. Adhering to these principles is essential for maintaining trust and professionalism in the investment industry.