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CIPMEXPERT EXAM FLASH CARDSPRESENTED BY THE SPAULDING GROUP
TM
Copyright 2014 by The Spaulding Group, Inc.
All rights reserved.
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The CIPM Association and CFA Institute do not endorse, promote, review, orwarrant the accuracy of the products or services offered by The SpauldingGroup, Inc. or verify or endorse the pass rates claimed by The Spaulding
Group, Inc. CIPMTM, Certificate in Global Investment Performance Standards®
and CIPM Association are trademarks owned by the CFA Institute.
©2015, The Spaulding Group, Inc.
Problem #I-1: Professional Ethics
Name the requirements a member must meet tomaintain his/her status as a CIPM Association
member, once accepted.
©2015, The Spaulding Group, Inc.
Solution for # I-1: Professional Ethics
• Remit annually to the CIPM Association acompleted Professional Conduct statement
• Satisfy the requirements of the CIPMProfessional Development Program
• Pay applicable CIPM Association membershipdues
Source: Standard VII - Standards of Professional Conduct (p. 5)
©2015, The Spaulding Group, Inc.
Problem #I-2: Professional Ethics
Identify the improper usages of the CIPM Marks in the followinglist:• Jane Smith, C.I.P.M• John Jones, CIPM• Jane Smith, CIPM• Expert Level candidate in the CIPM Program• CIPM, 2006, London Society of Investment Professionals• CIPM (Passed Finalist)• I have passed both CIPM examinations and may be eligible
for the CIPM certificate upon completion of the required workexperience
• He is one of two CIPM in the company.
©2015, The Spaulding Group, Inc.
Solution for # I-2: Professional Ethics
Incorrect usages in strikethrough:• Jane Smith, C.I.P.M• John Jones, CIPM• Jane Smith, CIPM• Expert Level candidate in the CIPM Program• CIPM, 2006, London Society of Investment Professionals• CIPM (Passed Finalist)• I have passed both CIPM examinations and may be eligible
for the CIPM certificate upon completion of the required workexperience
• He is one of two CIPM in the company.
Source: Standard VII - Standards of Professional Conduct (pp. 6-7)
©2015, The Spaulding Group, Inc.
Problem #I-3: Professional Ethics
True or False:
Standard VII of the CIPM Association Standards ofProfessional Conduct forbids covered persons fromexpressing opinions regarding the CFA Institute, the
CIPM Association or the CIPM Program.
©2015, The Spaulding Group, Inc.
Solution for # I-3: Professional Ethics
False: The standard does not cover expressing opinionsregarding CFA Institute, the CIPM Association or the
CIPM Program. Members and candidates may expresstheir disagreement with CFAI and the CIPM Association
on policies or advocacy positions.
Source: Standard VII - Standards of Professional Conduct (pp. 1,2,4)
©2015, The Spaulding Group, Inc.
Problem #I-4: Professional Ethics
Describe the general stance of the Standard covering “misconduct,” with respect
to civil disobedience.
©2015, The Spaulding Group, Inc.
Solution for # I-4: Professional Ethics
This standard is generally not meant to coverlegal transgressions resulting from acts of civildisobedience in support of personal beliefs, as
such conduct does not reflect poorly on the member/candidate’s professional
reputation, integrity or competence.
Source: Standards of Practice Handbook (p. 35)
©2015, The Spaulding Group, Inc.
Problem #I-5: Professional Ethics
Describe the Mosaic Theory, in the context of theStandard covering the use of material
non-public information.
©2015, The Spaulding Group, Inc.
Solution for # I-5: Professional Ethics
Mosaic Theory: Analysts may use significant conclusions derived from the analysis of• Public information• Nonmaterial nonpublic information
Under the Mosaic Theory, analysts are free to act onthis collection (mosaic) of information without
risking violation
Source: Standards of Practice Handbook (p. 39)
©2015, The Spaulding Group, Inc.
Problem #I-6: Professional Ethics
Describe the differences between how the GIPSStandards and the Standards of Professional
Conduct apply to covered persons.
©2015, The Spaulding Group, Inc.
Solution for # I-6: Professional Ethics
• GIPS applies to the firm and compliance isvoluntary
• The Standards of Professional Conduct applyto individual covered persons and are mandatory
• Covered persons can work for non-GIPS-compliant firms, but should encourage thosefirms to become compliant
Source: The Spaulding Group