CFA Level 3 Professionalism tenents (KIMM)? - Answer: -Knowledge of the law -Independence and objectivity -Misrepresentation -Misconduct Integrity of capital markets tenents? - Answer: -Material non-public information -Market manipulation Duties to clients are? - Answer: -Loyalty, prudence and care -Fair dealing - Suitability -Performance presentation -Preservation of confidentially Duties to employers? - Answer: -Loyalty CFA Level 3 -Additional compensation arrangements -Responsibilities of supervisors Investment analysis, recommendations and actions tenents? - Answer: -Diligence and reasonable care -Communication with clients and prospective clients -Record retention Conflicts of interest in CFA world? - Answer: -Disclosure of conflicts -Priority of transactions -Referral fees Asset manager code is? - Answer: -Outlines ethical & professional rules of firm that manage assets on behalf of clients Asset manager code goals? - Answer: - provide services in a fair and professional manner - disclose key elements of those services to clients CFA Level 3 Asset manager code advantages? - Answer: -Sends strong message on ethics -Demonstrates commitment to ethical behaviour and protecting investors -Enhances and protects firm's reputation -Develops client trust and confidence General "principals of conduct"? - Answer: -Act in professional and ethical manner at all times -Act for the benefit of the client -Act with independence and objectivity -Act with skill, competence, and diligence -Communicate with clients in a timely and accurate manner -Uphold the applicable rules governing capital markets CFA Level 3 According to traditional finance, individuals are (RSU)? - Answer: -Risk averse -Self-interested -Utility maximisers Prices in traditional finance? - Answer: -incorporate and reflect all information What are the tenants of behaviour finance? - Answer: -Grounded in psychology -Neither assumes rationality nor efficient markets What are cognitive errors (SIM)? - Answer: - statistical - informational-processing -memory errors