Ethics Help

I suck at ethics. It’s probably my worst area. Any suggestions on how I should brush up? Schweser notes, problems, read the actual CFAI text (haven’t yet)?


Read the CFAI text and do problems out of Schweser. That worked for me in Level1.

No brainer; read the actual CFAI text (even Schweser tells you that). Do the questions and read the short cases.

Oof, I was afraid you guys were going to say that. Thanks.

Ozzy’s right. That’s what I did in L1 and that’s what I did this time. Ethics is low-hanging fruit for me (I wish I could say that about other sections). I’d go through each passage, read it, jot a few notes down on the comments to make sure you understand why it was/wasn’t a violation, and move on. The better way would be to read each standard fully and *then* do that, but that takes about 10-12 hours and takes a couple of days. If you know everything else, it might be worth your time though. Good luck.

just read the handbook once… that’s what i’m gonna do now.

Maria Valdes, CFA, is an analyst for Venture Investments in the country of Newamerica, which has laws prohibiting the acceptance of any gift from a vendor if the gift exceeds US $250. Valdes has evidence that her Venture Investments colleague, Ernesto Martinez, CFA, has been receiving gifts from vendors in excess of US $250. Valdes is obligated to: A) disassociate herself from the activity. B) disassociate herself from the activity, urge Venture to persuade Martinez to cease the activity, and inform CFA Institute of the violation. C) disassociate herself from the activity, urge Venture to persuade Martinez to cease the activity, and inform CFA Institute and regulatory authorities of the violation. D) disassociate herself from the activity, and urge Venture to persuade Martinez to cease the activity.


D - you need to do more than just disassociate, but you don’t need to inform the CFA.


When is there a time when you actually tell the CFAI anything (other than if they are doing there own investigation and you have to comply to their requests)?

wuh-izzee answer?

Your answer: D was correct! Standard I(A), Knowledge of the Law requires members who have knowledge of colleagues engaging in illegal activities to disassociate from the activity and urge their firms to persuade the individual to cease such activity. Reporting to regulatory authorities may be prudent in certain circumstances, but is not required. Reporting to CFA Institute is not required. I can’t really think of a time you do have to tell the CFAI. I have a question on this sort of topic- they always have questions like if you catch your employee doing something bad what are the first things you’re supposed to do and it’s like talk to them or limit their trading activity or tell compliance, etc… does anyone know these cold? if you are supervising someone and they f up or you think they are f’ing up, what do you do first? i can’t remember what’s first.

never heard about such a case before nibs…

If you are a supervisor, I just pick the answer were they limit/monitor/restrict the screwy employee the most. I would bet a majority of the time its right.

Is it true that only applicable law that is related to professional activities must be abide by cfa candidates and analysts…? So many qualifications. Also has anyone tried to pick your answer by being most ‘conservative’, meaning always pick the answer says violate? Does that improve your score?