Ethical and Professional Standards
Guidance for Standards I–VII
Guidance for Standards I–VII
Standard I(C): Misrepresentation
Do not make misrepresentations relating to investment
analysis, recommendations, actions, or other professional
activities.
© Kaplan, Inc. 2
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Guidance for Standards I–VII
Standard I(C): Misrepresentation
Guidance
Standard covers oral, written, and electronic
communications
Do not misrepresent qualifications, services of self or
firm, performance record, or characteristics of an
investment
Do not guarantee a certain return
No plagiarism
© Kaplan, Inc. 3
Guidance for Standards I–VII
Standard I(C): Misrepresentation
Recommended procedures
Firms can assist employees by providing a written list of
the firm’s available services and a description of the
firm’s qualifications
Maintain records of materials used to prepare research
reports, and quote source, except for recognized
financial and statistical reporting services
© Kaplan, Inc. 4
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Guidance for Standards I–VII
Standard I(C): Misrepresentation
Recommended procedures
Models and analysis of others at the firm may be used
without attribution
Should encourage firm to establish procedures for
verifying marketing claims of third parties recommended
to clients
© Kaplan, Inc. 5
Guidance for Standards I–VII
Standard I(D): Misconduct
Do not engage in any professional conduct involving
dishonesty, fraud, or deceit or commit any act that reflects
adversely on professional reputation, integrity, or
competence.
© Kaplan, Inc. 6
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Guidance for Standards I–VII
Standard I(D): Misconduct
Guidance
This Standard covers conduct that may not be illegal,
but could adversely affect a member’s ability to
perform duties.
© Kaplan, Inc. 7
Guidance for Standards I–VII
Standard I(D): Misconduct
Recommended procedures
Adopt a code of ethics to which every employee
must adhere
Disseminate a list of potential violations and
associated disciplinary sanctions
Conduct background checks on potential employees—
look for good character and eligibility to work in the
investment industry
© Kaplan, Inc. 8
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Guidance for Standards I–VII
Standard I(E): Competence
Act with and maintain the competence necessary to fulfill
your professional responsibilities.
© Kaplan, Inc. 9
Guidance for Standards I–VII
Standard I(E): Competence
Guidance
Nature of abilities, skills, and knowledge depends on the
member or candidate’s specific responsibilities.
When assuming a new role, it is up to the member or
candidate to develop the needed abilities, skills, and
knowledge.
© Kaplan, Inc. 10
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Guidance for Standards I–VII
Standard I(E): Competence
Recommended procedures
Participate in training, professional development,
continuing education
Acquire professional designations
Attend seminars, conferences
Participate in professional organizations
Engage in informal self-study
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