📖 Standard II(A) — 综合练习与案例

Module: Ethics & Professional Standards Lesson: L014 — Standard I All Standards Comprehensive Review Coverage: Standard I(A) Knowledge of the Law · I(B) Independence and Objectivity · I(C) Misrepresentation · I(D) Misconduct

1. Standard I — Four Sub-Standards Overview

2. I(A) Knowledge of the Law — Key Review

2.1 Core Requirements

• Members and candidates must know and comply with all applicable laws, regulations, CFA Code of Ethics, and Standards of Professional Conduct
• When law conflicts with the Code: follow the stricter rule
• Upon discovering violations: first report to compliance department or direct supervisor
• If internal resolution fails: may need to disassociate from the activity or resign

2.2 Key Scenarios

2.3 Common Misconceptions

❌ "Complying with local law is enough" → Wrong! Must also comply with CFA Standards ❌ "A violation doesn't concern me" → Wrong! You have a duty to report ❌ "Supervisor told me to do it, so I did" → Wrong! Cannot follow instructions you know are wrong

3. I(B) Independence and Objectivity — Key Review

3.1 Core Requirements

• Maintain independence and objectivity in investment analysis, recommendations, and actions
• Do not accept any gifts, benefits, or compensation that could impair independent judgment
• Issuer-paid research must be disclosed

3.2 Gifts and Compensation Rules

3.3 Sell-Side and Buy-Side Analyst Independence

• Sell-side analysts: Guard against pressure from investment banking; research independence must be protected
• Buy-side analysts: Guard against preferential treatment from investee companies
• Ratings decoupled from compensation: Analyst compensation should not be directly tied to investment banking revenue

3.4 Common Misconceptions

❌ "A small gift doesn't matter" → Wrong! It's about intent and influence ❌ "An issuer taking me to dinner is fine" → Wrong! May impair independence ❌ "My research independence isn't my problem" → Wrong! It is your responsibility to protect it

4. I(C) Misrepresentation — Key Review

4.1 Core Requirements

Do not knowingly make any misrepresentation regarding: - Investment analysis, recommendations, or actions - Professional qualifications, performance, or capabilities - Scope of services of the firm or individual

4.2 Prohibited Misrepresentation Behaviors

4.3 Performance Presentation Standards

• Must use complete and fair performance data
• No cherry-picking time periods
• No cherry-picking accounts (must be representative)
• Terminated account performance must be included in historical records
• Simulated performance must be clearly labeled

4.4 Common Misconceptions

❌ "No problem citing others without attribution" → Wrong! That's plagiarism ❌ "Only showing good performance is fine" → Wrong! That's omission of material facts ❌ "Guaranteeing returns is okay" → Wrong! No guaranteed statements

5. I(D) Misconduct — Key Review

5.1 Core Requirements

Do not engage in any professional conduct involving fraud, deceit, or dishonesty that reflects adversely on professional integrity.

5.2 Coverage

5.3 Key Distinctions

• Professional misconduct ≠ everything in personal life
• Violation must be related to professional integrity
• Minor infractions (e.g., speeding ticket) typically do not trigger I(D)
• DUI → contextual judgment; repeated offenses involving professional integrity may violate

5.4 Common Misconceptions

❌ "Bankruptcy automatically violates I(D)" → Wrong! Only if fraud is involved ❌ "If it's legal, it's fine" → Wrong! CFA Standards may be stricter than law ❌ "Personal life is separate from professional ethics" → Partially correct, but the boundary requires careful judgment

6. Cross-Standard Comparison

6.1 Four Sub-Standards Coverage Map

          I(A) Knowledge of the Law
          ├── Know the law → Comply → Report violations
          │
          I(B) Independence & Objectivity  
          ├── Refuse influence → Disclose conflicts → Protect research independence
          │
          I(C) Misrepresentation
          ├── No plagiarism → True performance → No guarantees → Full disclosure
          │
          I(D) Misconduct
          └── No fraud → Maintain integrity → Respect legal boundaries

6.2 Cross-Standard Scenarios

7. Comprehensive Practice Questions (5 Questions)

Question 1

Sara, a CFA charterholder, discovers her firm is using an illegal practice that is "common in the industry." She should first:

A. Resign immediately and report to regulators B. Report the issue to the firm's compliance department or supervisor C. Do nothing, since everyone else is doing it D. Anonymously expose it on social media

Question 2

Jack receives a Rolex watch (worth $5,000) from a client in gratitude for his excellent investment advice over the past year. Jack's best course of action is to:

A. Accept it, since the client offered it voluntarily B. Accept it, but disclose to his employer C. Decline it, because a valuable gift may impair independent judgment D. Accept it, but tell the client not to send gifts in the future

Question 3

Mike uses his colleague Tina's model in his research report but does not mention Tina's name. This violates:

A. I(A) Knowledge of the Law B. I(B) Independence and Objectivity C. I(C) Misrepresentation D. No Standard has been violated

Question 4

Which of the following is MOST likely to violate Standard I(D) Misconduct?

A. Receiving a speeding ticket B. Filing for personal bankruptcy protection C. Deliberately fabricating false research data in an investment report D. A verbal argument with a colleague at the company annual meeting

Question 5

A public company arranges luxury hotel accommodations and a Michelin-star dinner for analyst Amy to attend their roadshow. Amy should:

A. Accept all arrangements, as this is industry practice B. Refuse to attend the roadshow C. Pay for her own travel and meals, or request reasonably standard arrangements D. Accept the arrangements but write a negative report to appear objective

8. Practice Quiz (5 Questions)

Practice 1

A CFA charterholder discovers that a fund's marketing materials only show profitable years from the past 3 years while hiding loss-making years. She reported to compliance but received no response. Her next step should be:

A. Resign and notify regulators B. Stay at the firm but disassociate from the fund C. Expose the firm's practices on social media D. Accept the situation, as she has fulfilled her reporting duty

Practice 2

Which of the following does NOT violate Standard I(C) Misrepresentation?

A. Claiming to be a "CFA" on a resume while having only passed Level I B. Promising clients "annual returns of no less than 15%" C. Citing data sources and model assumptions at the end of a research report D. Presenting simulated performance without labeling it as "simulated"

Practice 3

CFA member Li's supervisor asks her to remove negative analysis of a key client from a research report because the client is an investment banking client of the firm. Li should:

A. Remove the negative analysis to preserve the client relationship B. Refuse to remove it and report the pressure to the compliance department C. Neither remove it nor report it; stay silent D. Resign and immediately publish the unredacted report publicly

Practice 4

A CFA member is convicted of drunk driving (second offense). Regarding I(D), which statement is correct?

A. This automatically constitutes a violation of I(D) B. This does not violate I(D), as it is not professional conduct C. This may constitute a violation, depending on whether it impairs professional integrity D. Only the CFA Institute can determine whether a violation has occurred

Practice 5

The XYZ analyst team is asked to issue "Buy" ratings on research reports in exchange for investment banking business. Which analysis is correct?

A. This does not violate any Standard; it is a normal business arrangement B. Only I(B) is violated, because the ratings are influenced by external pressure C. Both I(B) (loss of independence) and I(C) (misrepresentation if ratings do not reflect true analysis) are involved D. As long as the investment banking relationship is disclosed, no Standard is violated

📝 Reply with question number + option (e.g., "1A 2C 3B 4C 5C"). You've got this!