This repository has been archived by the owner on Nov 14, 2023. It is now read-only.
-
Notifications
You must be signed in to change notification settings - Fork 7
/
6-asset-manager-code-of-professional-conduct.html
240 lines (204 loc) · 11 KB
/
6-asset-manager-code-of-professional-conduct.html
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
<!doctype html>
<html lang="en">
<head>
<meta charset="utf-8">
<title>Study Session 2 | Reading 6 | Asset Manager Code of Professional Conduct</title>
<meta name="description" content="Chartered Financial Analyst Level 3 Study Materials">
<meta name="author" content="MacLane Wilkison">
<meta name="apple-mobile-web-app-capable" content="yes" />
<meta name="apple-mobile-web-app-status-bar-style" content="black-translucent" />
<meta name="viewport" content="width=device-width, initial-scale=1.0, maximum-scale=1.0, user-scalable=no">
<link rel="stylesheet" href="css/reveal.min.css">
<link rel="stylesheet" href="css/theme/default.css" id="theme">
<!-- For syntax highlighting -->
<link rel="stylesheet" href="lib/css/zenburn.css">
<!-- If the query includes 'print-pdf', use the PDF print sheet -->
<script>
document.write( '<link rel="stylesheet" href="css/print/' + ( window.location.search.match( /print-pdf/gi ) ? 'pdf' : 'paper' ) + '.css" type="text/css" media="print">' );
</script>
<!--[if lt IE 9]>
<script src="lib/js/html5shiv.js"></script>
<![endif]-->
</head>
<body>
<div class="reveal">
<!-- Any section element inside of this container is displayed as a slide -->
<div class="slides">
<section>
<h1>Reading 6</h1>
<h3>Asset Manager Code of Professional Conduct</h3>
<p>
<small>Created for <a href="http://alchemistsacademy.com">AlchemistsAcademy</a> by <a href="http://alchemistsacademy.com/about">MacLane Wilkison</a></small>
</p>
</section>
<section>
<h2>General Principles of Conduct</h2>
<ol>
<li>Act in a professional and ethical manner at all times</li>
<li>Act for the benefit of clients</li>
<li>Act with independence and objectivity</li>
<li>Act with skill, competence, and diligence</li>
<li>Communicate with clients in a timely and accurate manner</li>
<li>Uphold the applicable rules governing capital markets</li>
</ol>
</section>
<section>
<h2>Asset Manager Code of Professional Conduct</h2>
<ol style="list-style-type: upper-alpha">
<li>Loyalty to Clients</li>
<li>Investment Process and Actions</li>
<li>Trading</li>
<li>Risk Management, Compliance, and Support</li>
<li>Performance and Valuation</li>
<li>Disclosures</li>
</ol>
</section>
<section>
<h2>A. Loyalty to Clients</h2>
<p>Managers must:</p>
<ol>
<li>Place client interest before their own</li>
<li>Preserve the confidentiality of information communicated by clients within the scope of the Manager-client relationship</li>
<li>Refuse to participate in any business relationship or accept any gift that could reasonably be expected to affect their independence, objectivity, or loyalty to clients</li>
</ol>
</section>
<section>
<h2>B. Investment Process and Actions</h2>
<p>Managers must:</p>
<ol>
<li>Use reasonable care and prudent judgment when managing client assets</li>
<li>Not engage in practices designed to distort prices or artificially inflate trading volume with the intent to mislead market participants</li>
<li>Deal fairly and objectively with all clients when providing investment information, making investment recommendations, or taking investment action</li>
<li>Have a reasonable and adequate basis for investment decisions</li>
</ol>
</section>
<section>
<h2>B. Investment Process and Actions (cont'd)</h2>
<p>Managers must:</p>
<ol start="5">
<li>When managing a portfolio or pooled fund according to a specific mandate, strategy, or style:</li>
<ol style="list-style-type: lower-alpha">
<li>Take only investment actions consistent with the stated objectives and constraints of that portfolio or fund</li>
<li>Provide adequate disclosures and information so investors can consider any proposed changes in the investment style or strategy</li>
</ol>
</ol>
</section>
<section>
<h2>B. Investment Process and Actions (cont'd)</h2>
<ol start="6">
<li>When managing separate accounts adn before providing investment advice or taking investment action on behalf of the client:</li>
<ol style="list-style-type: lower-alpha">
<li>Evaluate and understand the client's investment objectives, risk tolerance, liquidity needs, financial constraints, unique circumstances and any other relevant information that would affect investment policy</li>
<li>Determine that an investment is suitable to a client's financial situation</li>
</ol>
</ol>
</section>
<section>
<h2>C. Trading</h2>
<p>Managers must:</p>
<ol>
<li>Not act or cause others to act on MNPI that could affect the value of a publicly traded investment</li>
<li>Give priority to investments made on behalf of the client over those that benefit the Manager's own interests</li>
<li>Use commissions generated from client trades to pay for only investment-related products or services that directly assist the Manager in its investment decision making process, and not in the management of the firm</li>
<li>Maximize client portfolio value by seeking best execution for all client transactions</li>
<li>Establish policies to ensure fair and equitable trade allocation among client accounts</li>
</ol>
</section>
<section>
<h2>D. Risk Management, Compliance, and Support</h2>
<p>Managers must:</p>
<ol>
<li>Develop and maintain policies and procedures to ensure that their activities comply with the provisions of the Code and all applicable legal and regulatory requirements</li>
<li>Appoint a compliance officer responsible for administering the policies and procedures and for investigating complaints regarding the conduct of the Manager or its personnel</li>
<li>Enssure that portfolio information provided to clients is accurate and complete and arrange for independent third-party confirmation or review of such information</li>
</ol>
</section>
<section>
<h2>D. Risk Management, Compliance, and Support (cont'd)</h2>
<p>Managers must:</p>
<ol start="4">
<li>Maintain records for an appropriate period of time in an easily accessible format</li>
<li>Employ qualified staff and sufficient human and technological resources to thoroughly investigate, analyze, implement, and monitor investment decisions and actions</li>
<li>Establish a business-continuity plan to address disaster recovery or periodic disruptions of the financial markets</li>
<li>Establish a firmwide risk management process that identifies, measures, and manages the risk position of the Manager and its investments, including the sources, nature, and degree of risk exposure</li>
</ol>
</section>
<section>
<h2>E. Performance and Valuation</h2>
<p>Managers must:</p>
<ol>
<li>Present performance information that is fair, accurate, relevant, timely, and complete. Managers must not misrepresent the performance of individual portfolios or of the firm</li>
<li>Use fair-market prices to value client holdings and apply, in good faith, methods to determine the fair value of any securities for which no independent, third-paty market quotation is readily available</li>
</ol>
</section>
<section>
<h2>F. Disclosures</h2>
<p>Managers must:</p>
<ol>
<li>Communicate with clients on an ongoing and timely basis</li>
<li>Ensure that disclosures are truthful, accurate, complete, and understandable and are presented in a format that communicates the information effectively</li>
<li>Include any material facts when making disclosures or providing information to clients regarding themselves, their personnel, investments, or the investment process</li>
</ol>
</section>
<section>
<h2>F. Disclosures (cont'd)</h2>
<p>Managers must:</p>
<ol start="4">
<li>Disclose the following:</li>
<ol style="list-style-type: lower-alpha">
<li>Conflicts of interest generated by any relationship with brokers or other entities, other client accounts, fee structures, or other matters</li>
<li>Regulatory or disciplinary action taken against the Manager or its personnel related to professional conduct</li>
<li>The investment process, including information regarding lock-up periods, strategies, risk factors, and use of derivatives and leveragte</li>
<li>Management fees and other investment costs charged to investors, including what costs are included in the fees and the methodologies for determining fees and costs</li>
</ol>
</ol>
</section>
<section>
<h2>F. Disclosures (cont'd)</h2>
<p>Managers must:</p>
<ol start="4">
<li>Disclose the following</li>
<ol style="list-style-type: lower-alpha" start="5">
<li>The amount of any soft or bundled commissions, the goods and/or services received in return, and how those goods and/or services benefit the client</li>
<li>The performance of clients' investments on a regular and timely basis</li>
<li>Valuation methods used to make investment decisions and value client holdings</li>
<li>Shareholder voting policies</li>
<li>Trade allocation policies</li>
<li>Results of the review or audit of the fund or account</li>
<li>Significant personnel or organizational changes</li>
<li>Risk management processes</li>
</ol>
</ol>
</section>
<section>
<h1>THE END</h1>
<h3><a href="http://alchemistsacademy.com">AlchemistsAcademy.com</a></h3>
</section>
</div>
</div>
<script src="lib/js/head.min.js"></script>
<script src="js/reveal.min.js"></script>
<script>
// Full list of configuration options available here:
// https://github.com/hakimel/reveal.js#configuration
Reveal.initialize({
controls: true,
progress: true,
history: true,
center: true,
theme: Reveal.getQueryHash().theme, // available themes are in /css/theme
transition: Reveal.getQueryHash().transition || 'default', // default/cube/page/concave/zoom/linear/fade/none
// Optional libraries used to extend on reveal.js
dependencies: [
{ src: 'lib/js/classList.js', condition: function() { return !document.body.classList; } },
{ src: 'plugin/markdown/showdown.js', condition: function() { return !!document.querySelector( '[data-markdown]' ); } },
{ src: 'plugin/markdown/markdown.js', condition: function() { return !!document.querySelector( '[data-markdown]' ); } },
{ src: 'plugin/highlight/highlight.js', async: true, callback: function() { hljs.initHighlightingOnLoad(); } },
{ src: 'plugin/zoom-js/zoom.js', async: true, condition: function() { return !!document.body.classList; } },
{ src: 'plugin/notes/notes.js', async: true, condition: function() { return !!document.body.classList; } }
// { src: 'plugin/remotes/remotes.js', async: true, condition: function() { return !!document.body.classList; } }
]
});
</script>
</body>
</html>