前導(dǎo)課程講義

--StandardI(A)knowledgeofDemonstratetheapplicationoftheCodeandDistinguishbetweenconformitiesand mendpracticesandproceduresdesignedtopreventviolationsStandardI(A)KnowledgeoftheMembersandCandidatesmustunderstandandcomplywithallapplicablelaws,rules,andregulations(includingtheCFAInstituteCodeofEthicsandStandardsofProfessionalConduct)ofany ernment,regulatoryorganization,licensingagency,orprofessionalassociationerningtheirprofessionalStandardI(A)KnowledgeoftheIntheeventof ,MembersandCandidatesmustcomplywiththemorestrictlaw,rule,orregulation.MembersandCandidatesmustnotknowinglyparticipateorassistinandmustdissociatefromanyviolationofsuchlaws,rules,orregulation.StandardI(A)KnowledgeoftheRelationshipbetweentheCodeandStandardsandApplicableLawApplicablelawisthelaw ernsthemember’sMustfollowthemorestrictoftheapplicablelawortheCodeandStandards.StandardI(A)KnowledgeoftheAssociationwithViolationsbyConfronttheReporttosupervisororcomplianceMustdissociatefromtheillegal/unethicalactivity:removingmember’sorcandidate’snamefromresearchreport,askingforadifferentassignment,etc.Inextremecase,dissociationmayrequireStandardI(A)KnowledgeoftheAssociationwithViolationsbyothersInactionmaybeconstruedasItisencouraged(notrequired)toreportviolationsbyfellowmembersandcandidatestoCFAInstituteNorequirementtoreportviolationsto ShouldconsultlegalandcomplianceadviserswhenthereisdoubtwhetheraviolationoccurredStandardI(A)KnowledgeoftheInvestmentProductsandApplicableUnderstandandcomplywiththelawsandregulationsofthecountriesoforiginationandexpectedsaleReviewwhetherchannelfirmsresponsiblefordistributingproductsalsoabidebythelawsandStandardI(A)KnowledgeoftheNorequirementtobeexpertsonalltheapplicableStandardI(A)KnowledgeoftheMembersandStayinformedaboutchangesinapplicableRegularlyreviewfirm’scomplianceMaintainfilesofapplicablelawsandimportantDevelopand/oradoptacodeofProvideinformationonapplicableEstablishproceduresforreportingStandardI(A)KnowledgeoftheMichaelAllenworksforabrokeragefirmandisresponsibleforanunderwritingofsecurities.AcompanyofficialgivesAlleninformationindicatingthatthefinancialstatementsAllenfiledwiththeregulatoroverstatetheissuer'searnings.Allenseekstheadviceofthebrokeragefirm'sgeneralcounsel,whostatesthatitwouldbedifficultfortheregulatortoprovethatAllenhasbeeninvolvedinanywrong StandardI(A)KnowledgeoftheAlthoughitis mendedthatmembersandcandidatesseektheadviceoflegalcounsel,therelianceonsuchadvicedoesnotabsolveamemberorcandidatefromtherequirementtocomplywiththelaworregulation.Allenshouldreportthissituationtohissupervisor,seekanindependentlegalopinion,anddeterminewhethertheregulatorshouldbenotifiedoftheerror.MaryKim,CFA,practicesintheestablishedcountryofOldasiaandintheemergingcountryofNewasia.Byregulation,Oldasiaprohibitslicensedinvestmentadvisorsfromtradinginsecuritiesaheadoftheirclients.Newasiahasnolawsorregulationsinthisarea.MaryKimmay:tradeaheadofherclientsinNewasianottradeaheadofherclientsineithertradeaheadofherclientsinNewasiaonly,aslongasshehasmadefulldisclosuretoherclientsthatshereservestherighttodothis.BisUnderStandardI(A),MaryKim,asaCFAcharterholder,mustapplytheCFAInstituteCodeandStandardsorthecontrollinglaw,whicheverisstricter.BecauseStandardVI(B)requiresmemberstoputclienttradesaheadoftheirownMaryKimmustfollowthestandardintheabsenceoferninglaw,orwherethelawislessstrictthanImportance:☆☆RelationshipbetweentheCodeandStandardsandApplicableLawAssociationwithViolationsbyInvestmentproductsandApplicableExam遵守更嚴(yán)格 或CFA道德準(zhǔn)發(fā) 或準(zhǔn)則的行為時應(yīng)采取的恰當(dāng)行

StandardI(B)IndependenceandDemonstratetheapplicationoftheCodeandDistinguishbetweenconformitiesand mendpracticesandproceduresdesignedtopreventviolationsMembersandCandidatesmustusereasonable.careandjudgmenttoachieveandmaintainindependenceandobjectivityintheirprofessionalactivities.MembersandCandidatesmustnotoffer,solicit,oracceptanygift,benefit,compensation,orconsiderationthatreasonablycouldbeexpectedtocompromisetheirownoranother'sindependenceandBuy-sideclientsmayinfluencesell- independencePortfoliomanagershavesignificantpositionsinthesecurityunderreviewAdowngrademayaffectthemanager’sBadperformancemayaffectthemanager’sprofessionalSelectionofFundmanagerandMembersandcandidatesresponsibleforhiringandretainingoutsidemanagersandthird-partycustodiansshouldnotacceptbenefitsthatimpairtheirdecisions.Anexampleisthepay-to- 參與)InvestmentBanking ystsmustnotbepressuredtoissuefavorablereportoncurrent/prospectiveclientsbytheirfirms. ystsworkwithinvestmentbankingcolleaguesisappropriateonlywhenthe sareadequa managedanddisclosed. )”areusedtominimize sofPerformanceMeasurementand ystsmustnotallowinternalorexternalinfluencetoaffecttheirindependenceandobjectivity.Public ystsmustnotbepressuredtoissuefavorablereportsbythecompaniestheyfollow.CreditRatingAgencyMembers/candidatesmustpreventinfluencesfromthecompanyrequestingtherating.Issuer-paidystsmustdisclose sofAflatfee(固定費用)thatisnotlinkedtomendationsshouldbedeterminedpriortowritingthereports.BestpracticeisformembersandcandidatestopaybyMayacceptmodestlyarrangedtravelwhencommercialtransportationisunavailable(e.g.thedestinationisremote),butdisclosureisneeded.ExceptiontoModestgiftsareAgiftfromaclientisacceptable,butmembersandcandidatesshoulddisclosetotheiremployerspriortoacceptingsuchgift/benefit.ProtecttheintegrityofCreatearestrictedlist(限 RestrictspecialcostForexample,members/candidatesshouldencourageissuerstolimittheuseofcorporateaircrafttosituationsinwhichcommercialtransportationisnotavailable.LimitThestandarddoesnotprecludecusto ndordinarybusiness-relatedentertainmentaslongasitspurposeisnottoinfluencemembers/candidates.RestrictStrictlimitsshouldbeimposedon nelinvestmentonIPOsorprivateplacement.WalterFritzisanequity ystwithHiltonBrokeragewhocoverstheminingindustry.HehasconcludedthatthestockofMetals&Miningisoverpricedatitscurrentlevel,butheisconcernedthatanegativeresearchreportwillhurtthegoodrelationshipbetweenMetals&Miningandtheinvestmentbankingdivisionofhisfirm.Infact,aseniormanagerofHiltonBrokeragehasjus thimacopyofaproposalhisfirmhasmadetoMetals&Miningtounderwriteadebtoffering.Fritzneedstoproduceareportrightawayandisconcernedaboutissuingaless-thanfavorablerating. ysisofMetals&Miningmustbeobjectiveandbasedsolelyonconsiderationofcompanyfundamentals.Anypressurefromotherdivisionsofhisfirmisinappropriate.couldhavebeeneliminatedif,inanticipationoftheoffering,HiltonBrokeragehadplacedMetals&Miningonarestrictedlistforitssalesforce.LuisRodriguez,CFA,isan ystatXYZInvestments.Hecoversacompanythatislocatedinaregionthatisnoteasilyaccessible.Thecompanyinvites ystsfortheirannual ystmeetingandpaysforthetransportationtotheremo ocation.Rodriguezis:allowedtoacceptthepaymentfortransportationbecausethetripwasallbusinessandwasoutoftheway.allowedtoacceptthepaymentfortransportationaslongasitdoesnotexceed$100.notallowedtoacceptthepaymentfortransportationbecausethisisaconsidereda“perk”andmayinfluencehisindependentAisStandardI(B)IndependenceandObjectivity. ystsshouldpayfortheirowntravel modationsifthelocationisaccessiblebynormalmeans.Inthissituationpaymentisacceptablebecausethelocationisoutofthewayandthepurposeofthetripisallbusiness.Importance:☆☆I(lǐng)nfluencesfrominternalInfluencesfromexternalExam影響?yīng)毩⑿院涂陀^性的好處 絕對不能接不能 或外部壓力而妥協(xié)獨立記住 或好處有關(guān)的特StandardI(C)DemonstratetheapplicationoftheCodeandDistinguishbetweenconformitiesand mendpracticesandproceduresdesignedtopreventviolationsStandardI(C)MembersandCandidatesmustnotknowinglymakeanymisrepresentationsrelatingtoinvestment mendations,actions,orotherprofessionalStandardI(C)Amisrepresentationisanyuntruestatementoromissionofafactoranystatementthatisotherwisefalseormisleading.ImpactonInvestmentMembers/candidatesmustnotmisrepresentboththeirandtheiremployer’squalifications(資質(zhì))orservicesMisrepresentationresultingfromtheuseofthird- etheresponsibilityoftheStandardI(C)Members/candidatesmustensurethatperformanceisaccurateandcomplete,e.g.CherrypickingisnotThestandardprohibitsmembers/candidatesfrommakinganyreturnguaranteeonvolatileinvestmentsWhenperformance arkisrequired,selectmostappropriate StandardI(C)Theomissionofafactor ecanbemisleading,especiallyintheuseofmodelsandtechnical esfrommodelsshallnotbepresentedasOmissionsregardingthetruerelationshipbetweenamember/candidateandothercompaniesconstituteaStandardI(C) ThestandardsModelsand ysisdevelopedbyothersatamember/candidate’sfirmarethepropertyofthefirmandcanbeusedwithoutattributionInformationfromrecognizedfinancialandreportingservicesmaynotbeStandardI(C)Providingawrittenlistofthefirm’savailableservicesandadescriptionofthefirm’squalificationsVerifyoutside MaintainAttributequotations,includingprojections,table,statistics,model/productideas,etc.AttributesummariesofmaterialpreparedbyStandardI(C)AnthonyMcGuireisanissuer-paid ysthiredbypubliclytradedcompaniestoelectronicallypromotetheirstocks.McGuirecreatesawebsitethatpromoteshisresearcheffortsasaseeminglyindependent yst.McGuirepostsaprofileandastrongbuy mendationforeachcompanyonthewebsiteindicatingthatthestockisexpectedtoincreaseinvalue.Hedoesnotdisclosethecontractualrelationshipswiththecompanieshecoversonhiswebsite,intheresearchreportsheissues,orinthestatementshemakesaboutthecompaniesininternetchatrooms.StandardI(C)McGuirehasviolatedStandardI(C)becausethewebsiteismisleadingtopotentialinvestors.Evenifthemendationsarevalidandsupportedwiththoroughresearch,hisomissionsregardingthetruerelationshipbetweenhimselfandthecompanieshecoversconstituteamisrepresentation.McGuirehasalsoviolatedStandardVI(A)-Disclosureof sbynotdisclosingtheexistenceofanarrangementwiththecompaniesthroughwhichhereceivescompensationinexchangeforhisservices.JamiePyles,aportfoliomanagementtraineeforamoneymanagementfirm,callsprospectiveclients, lingthemthatheisaportfoliomanager.Heinformsprospectiveclientsthatbasedonthelastfiveyearsofperformanceofhisfirm,hecanguaranteetheclientatleasta75%return.Heinformsthemthathisfirmcanprovidealloftheservicesthattheywilleverneed.WhatistheminimumnumberofmisrepresentationsJamiehasmadetotheprospectiveclients?AisThereareatleastthreemisrepresentations.First,thatJamieisaportfoliomanager,whenhe'sreallyatrainee.Second,thatthefirmcanprovidealloftheservicestheywilleverneed.Third,thathecanguaranteea75%Importance:☆☆I(lǐng)mpactoninvestmentExam資質(zhì)或能提供的服務(wù)；3）刪除事實信息；4），等有關(guān)的誤StandardI(D)DemonstratetheapplicationoftheCodeandDistinguishbetweenconformitiesand mendpracticesandproceduresdesignedtopreventviolationsStandardStandardI(D)MembersandCandidatesmustnotengageinanyprofessionalconductinvolvingdishonesty,fraud,ordeceitorcommitanyactthatreflectsadverselyontheirprofessionalreputation,integrity,orcompetence.StandardI(D)ThestandardareprimarilyaimedatconductrelatedtoDonotseekthestandardsasamethodofsettling political,orotherdisputesunrelatedtoprofessionalethicsAnyactthatinvolveslying,stealing,orotherdishonestconductisaviolationStandardI(D)Conductthat,althoughnotillegal,butnegativelyaffectsamember’sorcandidate’strustworthinessorcompetence,isaviolationThelackofdiligence(sufficienteffort)inprovidingprofessionalservicesmaybeaviolation albankruptcymayviolatethestandardifitinvolvesfraudulentordeceitfulbusinessconduct.StandardI(D)CarmenGarciamanagesamutualfunddedicatedtosociallyresponsibleinvesting.Sheisalsoanenvironmentalactivist.Astheresultofherparticipationinnonviolent s,Garciahasbeenarrestedonnumerousoccasionsfortrespassingonthepropertyofalargepetrochemicalplantthatisaccusedofdamagingtheenvironment.StandardI(D)Generally,StandardI(D)isnotmeanttocoverlegaltransgressionsresultingfromactsofcivildisobedienceinsupport albeliefsbecausesuchconductdoesreflectpoorlyonthemember'sorcandidate'sprofessionalreputation,integrity,orcompetence.WhichofthefollowingactionsmostlikelyviolatesStandardI(D)Misconduct?Amember’smarketforecastshavebeenwronginthreeconsecutivequarters,promptingaformalcomplaintfromaALevelIcandidateisejectedfromaho forattemptingtopassabadcheck.Amemberpursuesanemploymentopportunitywithcompetingfirm,primarilyasameansofsecuringasalaryincreasefromhercurrentemployer.BisAnyactivitythatreflectsadverselyonamember’sprofessionalreputation,integrity,orcompetenceisaviolationofStandardI(D)Misconduct.Aslongasthememberhasareasonableandadequatebasisforall simplybeingwrongdoesnotcallthemember’sintegrityorcompetenceintoquestion.AmembercanpursueanemploymentopportunitywithacompetitoraslongasthememberabidesbytheStandardsrelatedtoDutiestoImportance:☆☆ConductrelatedtoprofessionalConductunrelatedtoprofessionalExam STANDARDII:INTEGRITYOFCAPITALStandardII(A)MaterialNonpublicDemonstratetheapplicationoftheCodeandDistinguishbetweenconformitiesand mendpracticesandproceduresdesignedtopreventviolationsStandardII(A)MaterialNonpublicMembersandCandidateswhopossessmaterialnonpublicinformationthatcouldaffectthevalueofaninvestmentmustnotactorcauseotherstoactontheinformation.StandardII(A)MaterialNonpublicWhatis“Material”Theinformationis“material”if1)itsdisclosurewouldhaveanimpactonthepriceofasecurity;or2)investorswouldwanttoknowtheinformationbeforemakinganinvestmentdecision;3)thesourceoftheinformationisExamples:earnings,merger&acquisition,innovativeproducts,changesinmanagement,legaldisputes,newdebtratings,etc.StandardII(A)MaterialNonpublicWhatConstitutes“Nonpublic”Informationis“nonpublic”untilithasbeendisseminatedtothemarketplaceingeneralInformationthatismadeavailabletoaselectgrouppeopleremainsMembers/candidatesmayuseinsiderinformationforthespecificpurposeofconductingduediligenceforsuchactivitiesasmergers,securityunderwriting,creditratings,etc.StandardII(A)MaterialNonpublicMosaicTheory(馬賽克理論Members/candidatesdonotviolatethestandardwhentheyreachamaterialconclusionaboutacorporateactionoreventthroughan ysisofpublicinformationandnonmaterialnonpublicinformationStandardII(A)MaterialNonpublicSocialInformationfrominternetandsocialmediaplatformsmaynotbeconsideredpublicExample:socialmediathatrequiresmembershipinordertoaccessthepublishedcontentMembers/candidatesshouldverifythatinformationobtainedfromthesesourcescsobeaccessedfromasourcethatisavailabletothepublic(e.g.,wges,pressreleases)StandardII(A)MaterialNonpublicUsingIndustryMembers/candidatesmayspeakwithexpertsregardingeconomicconditions,industrytrends,andtechnicalissuesrelatingtoproductsandservicesMembers/candidatesareprohibitedfromtakinginvestmentactionsbasedonmaterialnonpublicinformationprovidedbyindustryexpertsStandardII(A)MaterialNonpublicAchievePublicachievepublicdisseminationofmaterialinformationIfpublicdisseminationisnotavailable,onlytotheirsupervisoryandcompliance neloftheirStandardII(A)MaterialNonpublicAdoptComplianceandDisclosureFirewallisusedforpreventingthecommunicationofmaterialnonpublicinformationwithinfirmsAprohibitiononalltypesofproprietaryactivitywhenafirmpossessesmaterialnonpublicinformationisnotappropriate,e.g.marketmaking(造市、做市)StandardII(A)MaterialNonpublicFrankBarnes, andcontrollingshareholdertheSmartTownclothingchain,decidestoacceptatenderofferandsenthefamilybusinessatapricealmostthemarketpriceofitsshares.Hedescribesthisdecisiontohissister(SmartTown'streasurer),whoconveysittoherdaughter(whoownsnostockinthefamilycompanyatpresent),wholsherhusband,Staple.Staple,however, lshisstockbroker,AlexHalsey,whoimmedia forhimself.StandardII(A)MaterialNonpublicTheinformationregardingthependingsaleisbothmaterialandnonpublic.StaplehasviolatedStandardH(A)bycommunicatingtheinsideinformationtohisbroker.Halseyalsohasviolatedthestandardbybuyingthesharesonthebasisofmaterialnonpublicinformation. ystisallowedtotradeoninformationthathehaspredicted,suchasacorporateactionorevent,usingperceptiveassemblyand ysisofmaterialpublicinformationornonmaterial,non-publicinformation.Thisiscalledthe:assessmentdeductionmosaicCisThisdeductivereasoningislegal(doesnotconstitutetradingwithinsideinformation)andiscalledthemosaictheory.Importance:☆☆WhatismaterialandnonpublicMosaicSocialmediaandusingindustryExam判斷信息是否是重大 信息是解題關(guān)STANDARDII:INTEGRITYOFCAPITALStandardII(B)MarketDemonstratetheapplicationoftheCodeandDistinguishbetweenconformitiesand mendpracticesandproceduresdesignedtopreventviolationsStandardII(B)MarketMembersandCandidatesmustnotengageinpracticesthatdistortpricesorartificiallyinflatetradingvolumewiththeintenttomisleadmarketparticipantsStandardII(B)MarketExample:SpreadingfalserumorstoinducetradingbyExample:SecuringacontrollinganddominantpositioninafinancialinstrumenttomanipulatethepriceofarelatedderivativeortheunderlyingassetTheStandardisnotintendedtoprecludetransactionsundertakenonlegitimatetradingstrategiesStandardII(A)MaterialNonpublicInanefforttopumpupthepriceofhisholdingsinMoosehead&BelfastRailroadCompany,SteveWeinberglogsontoseveralinvestorchatroomsontheinternettostartrumorsthatthecompanyisabouttoexpanditsrailnetworkinanticipationofreceivingalargecontractforshipStandardII(A)MaterialNonpublicWeinberghasviolatedStandardII(B)bydisseminatingfalseinformationaboutMoosehead&Belfastwiththeintenttomisleadmarketparticipants.SteveWaters,aCFAcandidate,hasdecidedtoenterintoalongpositionofFarmcostock.SinceFarmcoisthinlytraded,WatersisconcernedtheorderwilloverwhelmtheliquidityofFarmcoandthepricewillsurge.Watersengagesinaseriesofblocktradesinorderto plishthepurchase.Watershasengagedin:neithertransaction-basedmanipulationnorinformation-basedtransaction-basedmanipulation,butnotinformation-basedbothtransaction-basedmanipulationandinformation-basedAisWatersisnotinviolationofStandardII(B),MarketManipulation.Transaction-basedmanipulationincludes,butisnotlimitedto,transactionsthatartificiallydistortpricesvolume.Information-basedmanipulationincludes,butisnotlimitedto,spreadingfalserumorsaboutafirminordertoinduceotherstotrade.Importance:☆☆ExamSTANDARDIII:DUTIESTOStandardIII(A)Loyalty,Prudence,andDemonstratetheapplicationoftheCodeandDistinguishbetweenconformitiesand mendpracticesandproceduresdesignedtopreventviolationsStandardIII(A)Loyalty,Prudence,andMembersandCandidateshaveadutyofloyaltytotheirclientsandmustactwithreasonablecareandexerciseprudentjudgment.Membersandcandidatesmustactforthebenefitsoftheirclientsandplacetheirclient’sinterestsbeforetheiremployer’sortheirownStandardIII(A)Loyalty,Prudence,andIdentifyingtheActualInvestmentSpecialForpensionfundortrusts,theclientisnotthe entitywhohiresthemanager,butratherthebeneficiariesoftheplanortrustWhenmanagingpoolsofclients’assets,themanagershouldcomplywithtermsof StandardIII(A)Loyalty,Prudence,and theClient’s mendationsandtransactionsaresuitabletoclients’objectivesandcircumstancesParticularcaremustbetakenonthebetweenthemembers/candidatesortheirfirmclients’Investmentdecisionsarejudgedinthecontextofthetotalportfolio,ratherthanbyindividualinvestmentStandardIII(A)Loyalty,Prudence,and mission(軟)SoftdollaristhepracticethataninvestmentmanagerusesclientbrokeragetopurchaseresearchservicesSoftdollarisclient’sasset,itsusesmustbenefit“Directedbrokerage”(客戶指定經(jīng)紀(jì)費)isapracticethataclientdirectamanagertousetheclient’sbrokeragetopurchaseservicesorgoodsfortheclientWhenselectingbrokerforclients,membersmust“besttransactioncost”and“bestStandardIII(A)Loyalty,Prudence,andProxy 投票Acost-benefit ysismustbemadepriortoanyproxyVotingproxiesmaynotbenecessaryinallStandardIII(A)Loyalty,Prudence,andRegularaccountClientFollowallapplicablerulesandEstablishtheinvestmentobjectivesoftheConsideralltheinformationwhentakingCarryoutregularDealfairlywithall sof StandardIII(A)Loyalty,Prudence,andEmilieRomeisatrustofficerforPagetTrustCompany.Rome'ssupervisorisresponsibleforreviewingRome'strustaccounttransactionsandhermonthlyreportsof stocktransactions.RomehasbeenusingNathanGray,abroker,almostexclusivelyfortrustaccountbrokeragetransactions.WhenGraymakesamarketinstocks,hehasbeengivingRomealowerpricefor alpurchasesandahigherpriceforsalesthanhegivestoRome'strustaccountsandotherinvestors.StandardIII(A)Loyalty,Prudence,andRomeisviolatingherdutyofloyaltytothebank'strustaccountsbyusingGrayforbrokeragetransactionssimplybecauseGraytradesRome's alaccountonfavorableterms.RomeisplacingherowninterestsbeforethoseofherWhichofthefollowingisapossiblebreachoffiduciarydutiesbyaCFAInstitutememberwhomanagesassetsonbehalfofaUsingdirectedNeitherofthesebreachfiduciaryVotingallproxiesofstockstheclientCisTocomplywithStandardIII(A),the ystisobligatedtovoteproxiesinaninformedandresponsiblemanner.Acostysismayshowthatvotingallproxiesmaynotbenefittheclient,sovotingproxiesmaynotbenecessaryinallinstances.Directedbrokerageoccurswhentheclientrequeststhattheclient'sbrokeragebeusedtopurchaseservicesthatdirectlybenefittheclient.Although,thismaypreventbestexecution,itdoesnotviolatetheStandardsasitwasdirectedbytheclient,notthebrokeragefirm.Importance:☆☆I(lǐng)dentifyingactual client’sSoftProxyExam要正確判斷“ ”，記住 使用原記住“經(jīng)紀(jì)商”的選擇標(biāo)準(zhǔn)， 投票原STANDARDIII:DUTIESTOStandardIII(B)FairDemonstratetheapplicationoftheCodeandDistinguishbetweenconformitiesand mendpracticesandproceduresdesignedtopreventviolationsStandardIII(B)FairMembersandCandidatesmustdealfairlyandobjectivelywithallclientswhenprovidinginvestment makinginvestment mendations,takinginvestmentaction,orengaginginotherprofessionalactivitiesStandardIII(B)Fair“Fair”isnotThestandarddoesnotstate“equally”CommunicatingwithallclientsonauniformbasispresentspracticalproblemsduetodifferencesintimingandmethodsofcommunicationswithclientsEachclienthasuniqueneedsandFirmsmaydifferentiatetheirservicestoclients,butdifferentlevelsofservicesshouldbedisclosed,andmustnotdisadvantageanyclientStandardIII(B)Fair Nodiscriminationagainstanyclientwhendisseminating ParticularcareshouldbetakenthatmendationreachesthoseclientswhohaveactedontheearlieradviceClientswhoplaceorderscontrarytoacurrentmendationshouldbeadvisedbeforetheorderisStandardIII(B)FairTreatingallclientsfairlyinlightoftheirinvestmentobjectivesandcircumstancesIfsecurityissueisoversubscribed(超額認購)theshouldbeprorated(按比例)toallMembers/candidatesshouldbeprohibitedfromparticipatingin“hotissue”Family-memberaccountsaretreatedsimilarlytoaccountsofotherStandardIII(B)FairLimitthenumberofpeopleShortenthetimeframebetweendecisionandPublicguidelinesforpre-disseminationSimultaneousMaintainalistofclientsandtheir ,disclosetradeallocationDiscloselevelsofStandardIII(B)FairLingChanmanagestheaccountsformanypensionplans,includingtheplanofhisfather'semployer.Chandevelopedsimilarbutnotidenticalinvestmentpoliciesforeachclient,sotheinvestmentportfoliosarerarelythesame.Tominimizethecosttohisfather'spensionplan,heintentionallytradesmorefrequentlyintheaccountsofotherclientstoensuretherequiredbrokerageisincurredtocontinuereceivingfreeresearchforusebyallthepensions.StandardIII(B)FairChanisviolatingStandardIII(B)becausehistradingactionsaredisadvantaginghisclientstoenhancearelationshipwithapreferredclient.Allclientsarebenefitingfromtheresearchbeingprovidedandshouldincurtheirfairportionofthecosts.Thisdoesnotmeanthatadditionaltradingshouldoccurifaclienthasnotpaidanequalportionofthecommission;tradingshouldoccuronlyasrequiredbytheAmoneymanagementfirmhasthefollowingpolicyconcerningnewmendations:Whenanew mendationismade,eachportfoliomanagerestimatesthelikelytransactionsizeforeachoftheirclients.Clientsarenotifiedofthenew mendationintheorderoftheirestimatedtransactionsize—largestfirst.Allclientshavesignedaformwheretheyacknowledgeandconsenttothisallocationprocedure.WithrespecttoStandardIII(B),FairDealing,thisis:aviolationofthenotaviolationbecausetheclientshavesignedtheconsentnotaviolationbecausetheclientsareawareoftheAisSuchapolicyisaviolationoftheStandardandclientacknowledgementand/orconsentdoesnotchangethatfact.Importance:☆☆ ExamSTANDARDIII:DUTIESTOStandardIII(C)DemonstratetheapplicationoftheCodeandDistinguishbetweenconformitiesand mendpracticesandproceduresdesignedtopreventviolationsStandardIII(C)WhenMembersandCandidatesareinanadvisoryrelationshipwithaclient,theymust:Makeareasonableinquiryintoaclient'sorprospectiveclient'sinvestmentexperience,riskandreturnobjectives,andfinancialconstraintspriortomakinganyinvestmentmendationortakinginvestmentactionandmustreassessandupdatethisinformationregularly.StandardIII(C)Determinethataninvestmentissuitabletotheclient'sfinancialsituationandconsistentwiththeclient'swrittenobjectives,mandates,andconstraintsbeforemakingan mendationortakinginvestmentaction.Judgethesuitabilityofinvestmentsinthecontextoftheclient'stotalportfolio.StandardIII(C)WhenMembersandCandidatesareresponsibleformanagingaportfoliotoaspecificmandate,strategy,orstyle,theymustmakeonlyinvestment mendationsortakeonlyinvestmentactionsthatareconsistentwiththestatedobjectivesandconstraintsoftheportfolio.StandardIII(C) anInvestmentPolicyStatementTheIPS(投資政策 )addressestheclient’srisktolerance,returnrequirements,investmentconstraints,therolesandresponsibilitiesofthepartiestotheadvisoryrelationshipBasedontheIPS,members/candidatescanassistin anappropriatestrategicassetallocationandinvestmentprogramUpdatingtheIPSshouldberepeatedatleastStandardIII(C)UnderstandingtheClient’sRiskConsiderwhetherleverage/derivativeproductissuitableforclientsTheneedforAninvestmentwithhighrelativeriskmaybeasuitableinvestmentinthecontextoftheentireportfolioStandardIII(C)AddressingUnsolicited(主動提出TradingWhenaclientmakesanunsuitabletradeIfithasonlyaminimumimpactontheentireportfolio,firsteducatingclientsontheeffectsoftherequest,thenmayexecutethetradeIfithasamaterialimpactontheportfolio,