Ethics Training Supplementary Guide

Online CFA Level 1 – Ethics Training

Ethics is a system of moral principles that affects how people make decisions. Ethics and standards, is considered to be the most important topic for CFA Level 1 exam. In fact the key intent of the CFA Institute and their programs is to promote the highest ethical practices among the investment professionals and hence has been given high weight-age to test the candidates.

This subject has been explained in simple and effective manner for better understanding with the help of examples and Case studies. The tutorials have been designed using animations which makes learning ethics quite exciting. The course content has been classified in extensive modules on the various standards and sub standards, which their detailed explanation and their practical application.

The focus area of this CFA Level 1 – Ethics Training is to understand the following standards:

• Professionalism
• Integrity of Capital Markets
• Duties to Clients
• Duties to Employers
• Investment Analysis‚ Recommendations‚ and Action
• Conflicts of Interest
• Responsibilities as a CFA Institute Member or CFA Candidate
• GIPS

Target Audience for CFA Level 1 – Ethics Training:

Specifically for the CFA candidates appearing for level 1 exam.

This CFA Ethics course describes the CFA level 1-Ethics standards and sub standards along with GIPS. The modules have been divided as follows;

• Professionalism

This standard is divided into four sub standards each of which have been explained using examples and case studies. The sub standards are Knowledge of Law which states the laws, rules and regulations the candidates and members are supposed to follow, Independence and Objectivity with the factors that might affect it, Misrepresentation of facts and Misconduct which states the activities that the CFA candidates and members cannot engage in such as dishonesty, fraud etc.

• Integrity of capital markets

This standard explains the ethical standards that the CFA candidates and members need to follow while dealing in capital markets. The standards include that any non-public information available with the candidates and members should not affect the value of any investment and they cannot engage in activities that lead to market manipulation.

• Duties to clients

This standard in detail covers the standards that the CFA members and candidates need to follow while providing services to their clients/customers. It includes qualities like loyalty, prudence and care that puts the customers interest first always, fair dealing in activities, clients suitability on deciding services to be provided, providing fair and accurate information and preserving their confidentiality.

• Duties to employers

In this module we focus on the duties that need to be fulfilled when it comes to employers. The CFA candidates and members must be loyal to their employers and make sure their activities do not harm the confidentiality of their work, they should not accept any gifts or compensations that may affect the employer’s interest, and they should also not violate any laws, rules and regulations.

• Investment analysis recommendations and actions

This part of the standard deals with the diligence that need to be maintained in analyzing investments and making recommendations, what and how communication has to be made to the clients, an also it also states that the members and candidates must maintain proper records of the recommendations they provide.

•  Conflicts of interest

This standard would explain that the disclosures relating to matters that involve conflict must be prominent and clear, priority to transactions and how referral fees are to be dealt with.

• Responsibilities as a CFA Institute Member or CFA candidate

Here we would learn about the conduct as Members and Candidates in the CFA Program and how CFA Institute, the CFA Designation, and the CFA Program have to be referred to.

• GIPS

Global Investment Performance Standards (GIPS) would explain the Ethical standards to be used by investment managers for creating performance presentations that ensure fair representation and full disclosure of investment performance results.