22 Questions
Who does the CFA Institute encourage to report violations of the Code and Standards?
Members, nonmembers, clients, and the investing public
Where can violations of the Code and Standards be reported?
Via email or the CFA Institute website
Where should investment services and products be sold?
In countries of origin
Who should conduct supervision of investment services and products?
Those responsible for supervision
Why is it crucial to understand the laws and regulations of the countries or regions of origin and expected sale?
To comply with legal requirements
What is necessary when transacting cross-border business?
Due diligence is necessary to protect reputation and firm's reputation
Why should members and candidates seek guidance from compliance or legal departments and external legal counsel?
To understand their responsibilities and implement them appropriately
What should be done due to the complexity of business transactions in today's market?
Seek guidance from compliance or legal departments and external legal counsel
What should members and candidates do if they believe imminent or ongoing client or employer activities are illegal or unethical?
Dissociate from the activity
What is the recommended action if direct discussions with the person committing a violation are unsuccessful?
Bring it to the employer's attention
What does the CFA Institute strongly encourage members and candidates to do regarding potential violations of the Code and Standards committed by fellow members and candidates?
Report them
What should members and candidates do if they are not aware of all the facts leading to a violation?
They may not recognize violations
When is dissociation from the activity required if a member or candidate believes imminent or ongoing client or employer activities are illegal or unethical?
If they believe imminent or ongoing client or employer activities are illegal or unethical
Is voluntary reporting of potential violations of the Code and Standards mandatory under applicable law?
No, it is not mandatory
Who should members and candidates consult for guidance regarding potential violations of the Code and Standards?
Legal and compliance advisers
What does Standard I(A) apply to according to the text?
When members or candidates know or should know that their conduct may contribute to a violation of applicable laws, rules, or regulations or the Code and Standards
What should members or candidates do if direct discussions with the person committing the violation are unsuccessful?
They must attempt to stop the behavior by bringing it to the employer's attention
What is strongly encouraged by the CFA Institute for members and candidates to do?
Report potential violations of the Code and Standards committed by fellow members and candidates
What should members or candidates do if they believe imminent or ongoing client or employer activities are illegal or unethical?
Dissociate from the activity
What is not mandatory under applicable law but may be prudent under certain circumstances?
Voluntary reporting of potential violations
What does the CFA Institute presume members and candidates to have knowledge of?
All applicable laws, rules, and regulations
When should members or candidates dissociate from illegal or unethical activities?
If they believe imminent or ongoing client or employer activities are illegal or unethical
Test your understanding of the CFA Institute's Standard I(A) with this quiz. Assess your knowledge of members' and candidates' responsibilities for violations, and their obligation to comply with laws, rules, and regulations.
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