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Study Session 2: Ethical and Professional Standards: Application

To all schweser users

Hi all,

I’ll be finished with quants and econ in 4 days and ive been solely using schweser whilst only doing the CFA EOC qs. Studying full time to the exam.. but still feel like I have a long way to go in mastering and even remembering the material I learnt some time back.

How are you studying for Ethics?

Hello AF,

I’m wondering how everyone is studying for Ethics. The majority of the material is similar to level 1, and time constantly seems to be against me. Did you use your notes from level 1 to study, and verify that it was similar to the level 2 material? Did anyone find any large differences in the code and standards between both levels? I’ve gotten through about half of the material, and so far there hasn’t been any significant differences.

Reading 7 Trade Allocation

What is the relevance of the statement , ‘Distribute new issues by client, not by portfolio manager’?

New Prudent Investor Rule

Under the New Prudent Investor Rule, diversification is one of the basic investment principles that determine prudent practice, and is normally required of trustees unless it is clearly imprudent to do so.

Can anybody give me an example when it is imprudent to diversify?

Many thanks in advance.

Clarification on Priority of Transactions

If there is a hot issue coming up and I allocate to my spouse’s account ahead of other clients, I would violate priority of transactions. But if I don’t allocate to my parent’s just like other clients, I would be in violation also.

Seen CFA mock questions before?



I am attacking the last CFA mock (not the one dubbed ‘March’ mock) and note that some questions are quite similar (read: the same) as the practice test questions. 

Is that the case or am i going mad? 

If so, I feel pretty short changed as i have been working up this mock to gauge preparedness, and i am faced with questions i have already done.

Any views on this please?

"The CFA is the highest creditial in the global investment management" CFAI mock 2009

A charterholder always tell prospective clients that “Im a charterholder and the CFA is the highest creditial in the global investment management” and the question asks if this is compliance with standards. My reaction was “NO” as this implies superior …, but the answer says this is acceptable and in compliance with the standard. Does anyone think otherwise like me???

CFAI mock 2009

Ethics - immediate family definition

Can someone please clarify what cfai considers to be immediate family? I read somewhere that it has to do with living in the same house but that doesn’t seem right. Help? Thanks.