Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Ethics & GIPS > Ethics > Flashcards

Ethics Flashcards

(79 cards)

Start Studying
1
Q

AMC

A

Asset manager code

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Purpose of AMC

A

to assist firms in developing
+ ethical business
+ risk management practices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Benefits from adopting AMC

A

gaining the trust

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

4 steps of PCP

A

(1) Inquiries
(2) Investigation
(3) Conclusion
(4) Types of sanction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

structure of PCP

A

(1) Responsible for enforcement

(2) Basic structure for enforcing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Six components of the Code of Ethics
(PPPUMA)

A

(1) Act with
(2) Place (market, client, …)
(3) Use (tan tam)
(4) Practice and encourage others to practice
(5) Promote (the integrity and viability…)
(6) Maintain and improve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

knowledge of the law

A

(1) Understand and comply with

applicable laws and regulations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

3 content in Understand and comply with

applicable laws and regulations

A

(1) Not required to be legal experts
(2) Know how to get compliance guidance
(3) Be vigilant in learning about changing laws

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

4 step of dissociate from

the activity

A

S1: Stopping the activity
S2: Contacting compliance
S3: Stepping away
S4: Seeking other employment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

whistleblowing

A

Report legal and ethical violations

to a regulatory authority is not good because of internal policy can not whistleblowing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

priciple of 1B. independence & objectivity

A

avoid situations that could cause a loss of independence or objectivity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

best practice of 1B. independence & objectivity

A

reject any offer of gift that could be expected to threaten their independence and objectivity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Example of 1B: IB-Research

Relationships

A

pressure to issue favorable research on current or prospective investment banking clients

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

example of 1B: Public Companies

A

pressure to issue favorable reports

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

eg of 1B: Buy-Side Clients

A

may have significant positions in

the security of a company under review

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

eg of 1B:Fund Manager and

Custodial Relationships

A

+ M&C who are responsible for hiring and retaining outside managers and third-party custodians
+ should not accepts gifts or entertainment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

eg of 1B: Credit Rating

Agency Opinions

A

(1) : prevent undue influences from a sponsoring company

(2) should be mindful of the potential conflicts of interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

eg of 1B: Issuer-Paid

Research

A

+ Some companies hire analysts to produce research reports

+ Analyst: limit the type of compensation, only flat fee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

eg of 1B: Travel funding

A

+ Best practice: use commercial transportation

+ If unavailable: accept modestly arranged travel

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

tranh xung dot

A

Create a restricted list, distribute only factual info about the companies on the list

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Definition of mispresentation

A

+ any untrue statement or omission of a fact

+ or any false or misleading statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

return on volatile investments

A

+ should not guarantee clients any
specific return on volatile investments
+ except for: risk free assets, cover losses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

definition of misconduct

A 
- all conduct that reflects poorly on
\+ professional integrity
\+ good reputation, or competence
- act that involves lying, cheating,
stealing, or other dishonest conduct
- Conduct that damages trustworthiness or competence (uong ruou, danh nhau cho lam viec,...)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

material non public infor

A

+ material and non-public info must not be used for direct buying and selling of individual securities or bonds
+ nor to influence investment actions related to derivatives, mutual funds, or other alternative investments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
definition Material info
+ disclosure would likely have an impact on the price + reasonable investors would want to know the info before making an investment decision + Depends on * source of info * likely effect on the relevant stock price
26
definitio of Nonpublic info
+ has not been disseminated + no available to the market place + may use insider information provided legitimately
27
Mosaic theory
public info | nonmaterial nonpublic info
28
"Firewall"
+ restrict the flow of info to appropriate people + Appropriate interdepartmental communications + Physical separation of departments + Prevention of personnel overlap +
29
definition of Market | Manipulation
+ practices that distort security prices or trading volume + with the intent to deceive people or entities that rely on info in the market.
30
eg of Identifying the actual investment client
defined benefit pension plan
31
eg of Developing the | clients' portfolio
+ Follow any guidelines set out by client for the management of assets + Judge investment decisions on context of total portfolio
32
eg of Soft commission policies | Soft dollar
+ pays a higher brokerage commission than normal to allow for the purchase of goods or services + obligated to seek: best price and best execution
33
eg of Proxy voting policies
34
``` Addressing Unsolicited Trading Requests (Thuc hien khoan dau tu khong phu hop IPS) ```
+ minimum impact on the entire portfolio -> ok and education | +
35
non-compete agreement,
Related to: + contact clients + contact information
36
non-soliciting agreement
37
independent contractors
là loại hợp đồng thời vụ với employer, mức độ yêu cầu loyalty sẽ phụ thuộc điều kiện điều khoản trên HĐ
38
cach tranh trach nhiem khi nhan vien vi pham
effective compliance systems
39
communication to client
1. Disclose to clients the basic format and general principles of the investment processes 2. Disclose to clients clients significant limitations and risks associated with the investment process 3. Use reasonable judgment in identifying which factors are important to investment 4. Distinguish between fact and opinion in the presentation of investment
40
whistleblowing
which members and candidates must act contrary to their employer’s interests in order to comply with their duties to the market and clients.
41
sub type of I.Professionalism
A. Knowledge of the law B. Independence & Objectivity C. Mispresentation D. Misconduct
42
II Integrity of Capital market
A. Material nonpublic information B. market Manipulation
43
III. Duties to clients
A. Loyalty, prudence and care B. Fair Dealing C. Suitability D. Performance presentation E. Preservation of confidentiality
44
IV Duties to employer
A. Loyalty B. Additional compensation arrangement C. Responsibility of supervisor
45
V. Investment analysis, recommendation and action
A. Diligence and reasonable basis B. Communication with clients and perspective clients C. Record attention
46
VI. Conflicts of interest
A. Disclosure of conflict B. Priority of transactions C. Referral fees
47
who most likely determine whether: + violation CFA code & standard + testing policies + what sanction should be impost
+ Professional conduct staff + Disciplinary review committee
48
disciplinaty CFAI may be impose A. Fines for violation B. revocation of membership C. banishment from industry
B. revocation of membership
49
If you are be internal auditor accuse, arcoding CFA, you should: A. disclose the complaint to CFAI B. refuse further bonuses until the issue is resolved C. request temporary suspension of CFA member
A. disclose the complaint to CFA
50
under "knowledge of the law", you must understand: A. applicable law B. all the law (update, outdate, ...)
A, applicable law
51
with violations of other, should you report ?
(1) If the person do violation is member & candidate -> should report to PCP (2) If the person do violation is not M&C: + If law is do not allow leak internal infor -> no need to report + If law is force -> should report
52
are they violate ? A. receive the gift from client (after transaction) B. receive the gift from entities seeking to influence of M&C
A. not violate (disclose to employer after that) B. violate
53
the relationships related to Professionalism
(1) IB - Analysis (đội BSC đang ngồi chung) (2) Public company - Analysis (3) Buy-side clients - Analysis (thường là mqh giữa cty quỹ và bp phân tích của CTCK) (4) Fund manager: các fund manager muốn đi cửa sau để được tuyển dụng (5) Custodial relationship: hối lộ để được làm vendor (6) credit rating agency: agency được trả tiền để xếp hạng tín nhiệm -> conflict -> solution: phải là phí cố định (7) Issuer paid research: phải là phí cố định (8) travel funding
54
Lí giải việc "create a restricted list"
Khi CTCK có deal với cổ phiếu niêm yết lên sàn -> CTCK phải đưa vào ds hạn chế -> analysis chỉ được đưa ra factual information , not opinion
55
vấn đề worked completed for employer
Khi nghỉ việc, CTCK có thể tái đăng bài nghiên cứu của tôi và loại bỏ tên tôi ra khỏi báo cáo.
56
Vấn đề Misconduct
Không áp dụng cho các vấn đề: + personal problem + polistic problem + not related to Ethics problem Eg: enviromental problems
57
Vấn đề material non public information: nếu giao dịch gián tiếp qua CCQ, detivative thì có được không ?
KHông
58
what is material information
(1) type of information (2) source of information
59
selective disclosed information problem
liên quan đến việc analyst tiếp cận thông tin tại buổi họp báo, tuy nhiên sau đó các thông tin tại buổi họp báo vì 1 lý do nào đó ko được công bố -> analyst phải rất lưu ý để tránh vi phạm phải thông tin nonpublic information
60
hơw to do Firewall
(1) appropriate interdepartment communication (thường sẽ thông qua pháp chế trước) (2) physical separate of department (3) prevention of overlap personel
61
Khi có giao dịch IB, cấm tất cả các giao dịch tự doanh, liệu có hợp lý không ?
KHỔNG vì dứt dây động rừng -> IB sẽ có động cơ để moi móc thông tin
62
voting right proxy problem ? Trường hợp có nhiều ĐH cổ đông cùng diễn ra thì nên đi cái nào
Đi đại hội nào có nhiều vấn đề quan trọng hơn
63
Tình huống phát sinh cơ hội đầu tư, appropriate for 2 client, tuy nhiên có 1 KH phù hợp, KH còn lại phù hợp, tuy nhiên theo thông tin cung cấp tại thời điểm xây IPS ban đầu, KH không còn nguồn tài chính nào khác, vậy có vi phạm ko ?
Không
64
credible performance
(1) accurate (2) fair: phản ánh dược năng lực quản lý quỹ hiệu quả của người cung cấp thông tin
65
Vấn đề vi phạm chuẩn mực "confidentiality" in group Zalo, Facebook ? How to resolve
Trước khi add thành viên, phải warning các thành viên không được tiết lộ thông tin
66
Vấn đề làm thêm bên ngoài, cần phải báo cáo khi nào ?
(1) Công việc có ảnh hưởng (2) công việc không ảnh hưởng, nhưng có nhận lương
67
vấn đề additional compensation arrangerment
(1) không cấm (2) phải có chấp thuận bằng văn bản (written consent) bởi employer
68
Đối với trường hợp responsible of supervisor, để xem supervisor có vi phạm hay không ? Trước đó nếu có xảy ra, có hành động gì để tránh tái diễn không ? (supervisor phải xây dựng lại khung pháp chế tốt)
69
Problem related to reasonable basis
(1) Using secondary/ third party research (phải kiểm tra báo cáo có đủ tốt cho KH ko? (2) Using Quantitative oriented research (phải hiểu các tham số, điều kiện, giả định, ...) (3) developing quantitative oriented techniques (4) selecting external advisor & Sub-advisor (phải đánh giá ông advisor theo các tiêu chí cụ thể (1) ethics, (2)compliance & internal process (3) quality of public infor (4) investment process
70
group research & Decision making
kết luận bản phân tích trái ngược với hội đồng (nếu mình tin tưởng đã tuân thủ quy trình chuẩn -> vẫn có quyền để tên trên báo cáo) Hội đồng chót -> không được issue khác hội đồng
71
VD dựa trên báo cáo của bên phân tích địa chất mỏ dựa trên mẫu vật -> fact or opinion (will) ?
Opinion vì bản chất là ý kiến dựa trên mẫu vật -> suy ra tổng thể
72
Lưu trữ dữ liệu ? năm
7 năm Nếu có strict hơn thì theo cái strict 5 năm
73
Nếu đang được giao nhiệm vụ viết báo cáo vè MWG, tuy nhiên cá nhân hiện đang nắm CCQ có MWG -> có phải disclose không ?
Có
74
vấn đề blackout period / restricted period
thời gian cấm giao dịch vì phát sinh deal KH lớn, cần thời gian để hoàn tất giao dịch cho KH
75
Nếu phát sinh referral fee thì cần làm gì
Cần báo với các potential client về contractor, trước khi KH đồng ý thuê
76
a firm ....... adopt the CFA Institute Code of Ethics and Standards of Professional Conduct, the firm ..... adopt the CFA Institute Asset Manager Code
Can - can
77
conform CFAI
tuân thủ CFAI
78
verbal consent
sự đồng ý bằng lời nói
79
Whistleblowing is always allowed ?
incorrect because Whistleblowing for personal gain is not allowed

Ethics & GIPS (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions