24 Questions
What is the Manager's responsibility regarding insurance coverage?
To disclose the extent of fidelity or other contractually required insurance carried and any subsequent changes
Who is responsible for the ethical behavior of employees, including AMS, LSM, or PCAM designees?
The AAMC member
What should the Manager do with funds held for the client?
Keep them in separate accounts and return them to the client at the end of the engagement
What happens when there are complaints against the AAMC member or its affiliated Designees?
The Supervising PCAM member is advised
What is the purpose of providing financial reports to the client?
To comply with the terms of the management agreement
How are reviews and inquiries conducted when the AAMC member and its affiliated Designees are involved?
Simultaneously to the extent possible
Who owns the original records, files, and books held by the Manager?
The client
What is considered when determining sanctions for violations?
Both the degree of violation and responsibility of the party involved
Who may be subject to sanctions for violations of affiliated staff members?
Only the AAMC member
What is expected of Managers in their professional relationships?
To maintain a professional relationship with peers and industry professionals
What principles are considered when making determinations regarding sanctions?
Established legal principles of responsibility and liability
What is a key aspect of a Manager's professional conduct?
To conduct themselves in a professional manner at all times
Why may sanctions vary against those involved in a violation?
Because of their degree of violation and responsibility
What is prohibited in the Manager's professional practice?
Engaging in price fixing, anti-trust, or anti-competition
What is the Manager's duty regarding client confidentiality?
To maintain confidentiality with all current and former clients
What is the purpose of the review and inquiry process?
To determine the facts and make a fair decision
What is the primary obligation of a Professional Manager in terms of compliance?
To comply with current bylaws, standards, and practices established by CAI
What is the purpose of a Professional Manager's continuous education?
To stay updated with the latest industry trends and best practices
What should a Professional Manager refrain from making?
Inaccurate or misleading representations or statements
What should a Professional Manager undertake?
Only engagements that they can reasonably expect to perform with professional competence
What should a Professional Manager exercise during the vendor selection process?
Due care and planning to avoid any perception of impropriety
What type of disclosure must a Professional Manager provide to clients?
Written disclosure of any compensation, gratuity or other form of remuneration
What is the primary responsibility of a Professional Manager in terms of client communication?
To provide timely notice to clients as required by state statutes or legal documents
What is the purpose of a Professional Manager's disclosure of conflicts of interest?
To avoid any perception of impropriety or favoritism
Study Notes
Professional Manager Code of Ethics
- A professional manager must comply with current bylaws, standards, and practices established by Community Associations Institute (CAI), and federal, state, and local laws, ordinances, and regulations.
Continuing Education and Professional Competence
- A professional manager must participate in continuing professional education through CAI and other industry-related organizations.
- The manager must only undertake engagements that they can reasonably expect to perform with professional competence.
Client Interest and Disclosure
- A professional manager must act in the best interests of the client and refrain from making inaccurate or misleading representations or statements.
- The manager must disclose all relationships in writing to the client regarding any actual, potential, or perceived conflict of interest between the manager and other vendors.
- The manager must disclose any compensation, gratuity, or other form of remuneration from individuals or companies who act or may act on behalf of the client.
Financial Management and Reporting
- A professional manager must ensure that homeowners receive timely notice as required by state statutes or legal documents and protect their right of appeal.
- The manager must disclose to the client the extent of fidelity or other contractually required insurance carried on behalf of the manager and/or client.
- The manager must maintain separate accounts for client funds, not misappropriate them, and return them to the client at the end of the manager's engagement.
- The manager must prepare and furnish accurate and timely financial reports to the client in accordance with the management agreement, job description, or duly adopted Board policies.
Confidentiality and Records
- A professional manager must recognize that client records, files, and books are the property of the client and must be returned to the client at the end of the manager's engagement.
- The manager must maintain the duty of confidentiality to all current and former clients.
Professional Conduct
- A professional manager must refrain from criticizing competitors or their business practices.
- The manager must act in the best interests of their employers and maintain a professional relationship with peers and industry-related professionals.
- The manager must conduct themselves in a professional manner at all times when acting in the scope of their employment.
Business Practices
- A professional manager must not engage in any form of price fixing, anti-trust, or anti-competition.
Responsibility and Accountability
- The AAMC member is responsible for the ethical behavior of all employees, including any AMS, LSM, or PCAM designees under their direction.
- The AAMC member is subject to sanctions for violations of any of its affiliated staff members.
This quiz covers the code of ethics and continuing education requirements for professional managers, including compliance with laws and regulations, and participation in ongoing education through organizations like CAI.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
