last minute advice on Ethics

I’m looking for advice on how to master Ethics at the 11th hour. I had hoped my scores would improve after practice tests, topic tests, working through all the EOC problems from CFAI, but my scores are pitiful (I got 50% in the last Schweser exam I took). I have a sinking feeling I’m going to be right on the border so I need all the help I can get from Ethics to pull me over (based on what I’ve been reading on this forum). I plan to spend no more than half a day in the next week on Ethics, so please let me know what’s worked well for you in terms of mastering this stupid topic.

When you just don’t have a clue, pick the answer that you think is the fairest.

I found the CFA2 ethics question extreamly hard. You are not alone!

When in doubt, just pick the one you think is the most incorrect.

That’s not good strategy because all Ethics questions are tricky and not straightforward. I really don’t know what is the goal of CFAI with such kind of testing Ethics code and standards. I’d rather recommend hardly practicing of ROS since they appear in over of 50 % Ethics questions.

Now I see what Tau wrote, I completely agree… yes

Ethics is the trickiest section. It’s not straightforward and missing an underlying detail could lead you to the wrong answer.

As Flashback said, study the ROS. I think it will probably account for 50% of the Ethics questions, and the reading is short, so why not? It would take like 1-2 hours at most to memorize them, perhaps.

Tau that is lunacy!

If you have no idea, look at the language ‘least likely’ or ‘most likely’ then use your logical reasoning skills from there. thats my plan.

thanks everyone! I will keep these tips in mind. I tend to pick the option corresponding to the most shady-sounding situation. For example, CFAI mock - Carlyle, the last question tripped me up - they made her action in speaking to one of the clients about a recent conversation she had with the CFO BEFORE the actual meeting started sound totally suspect. Turns out it wasn’t a violation.

That’s also happened to me! I though she was disclosing confidecial information about her conversation with the CFO… I hate the suibjective ones, its a matter of apprecation. I still thinking that should be a violation…

Snah, I know!!

I hate to be nitpicky but if someone who got this particular problem correct can opine on why they DIDN’T think her action wasn’t a violation…I’d be greatful. Just want to understand your reasoning and try to use that for similar questions.

The only rule with this is never make a rule after a question like that!

I answered that one incorrectly as well. I’m still not 100% certain on how that’s not a violation- talking to a select set of clients about research that has not been published.

And to take this a step further, even if she didn’t disclose any MNPI… I would argue that discussing only one piece of a research report with a prospective or current client would not give them the full picture and be a violation.

Hopefully we don’t see too many subjective ones like this on game day.

Same, got that question wrong. Ughhh

I think everyone got that question wrong…BUT The question is a trick. Re-read it, it says in regards to her meeting of Potential."During X meeting with X potential clients, what was the violation.

The meeting with the CFO was with an exsisting client, they aren’t asking about that. They are asking about the potential client meeting.

I just think Ethics questions are ambiguous. If there were CORRECT answers to every situation, then it wouldn’t take months or years for a court case to be resolved. Everyone has their own interpretation. Try applying the CFA ethics and standards to real world situations.

Jsnazz, I think I see what you’re saying. They were asking about literally the last sentence in the vignette. Wow…tallk about attention to details.

I don’t know, Ethics is just a process in reading comprehension, intuition and logic. Sure you need to have a reasonably good understanding of the underlying code and standards, but a lot of it using that understanding and applying reason. Maybe it’s just the way my brain works but I tend to do pretty well on CFAI Ethics questions (70+ at Level I and 70+ on my Level II attempt last year).

I was beginning to question myself though after scoring poorly on Ethics on Schweser’s mock exams, but then I went 11/12 this morning on the CFAI morning session mock. It must be the way the Schweser exam writers frame their questions.

My best advice is to read Ethics vignettes in their entirety (as opposed to skimming for relevant info like I do in every other subject) and be on alert for key sentances that you know apply to a part of the code and standards. When you find one, underline it. I often put a check mark on things I know are correct, and an X on things I know are questionable or an obvious violation. Then I read the questions and go back to the vignette for clarification.

Good luck!

Hope these show up. Anyone want to add to the list.

  1. Deciding not to allocate shares to a family member who is a client of your firm. VIOLATION.

  2. Receiving additional compensation and not disclosing it to your firm. VIOLATION

  3. Overhearing the CFO discuss an upcoming earnings report that isn’t public and taking a position in your account. VIOLATION

  4. Selling shares to raise cash for emergency. NOT VIOLATION

  5. Indicating that having a CFA, you are superior to others. VIOLATION.

  6. Going on TV and recommending a stock but not disclosing compensation arrangements or conflicts. VIOLATION

  7. Recommending a client overweight stocks when he/she is two years from retirement and needs income. VIOLATION

  8. Combining non-material public information to draw a conclusion. NOT VIOLATION

  9. Storing records for six months only. VIOLATION (should be 12 months)

  10. Collecting client information from your current firm when trying to start a new company. VIOLATION

  11. Collecting client information from public sources. NOT VIOLATION