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Ethical & Professional StandardsModule 5 of 5

Ethics Application

5

Concepts

0

Formulas

1

Decisions

4

Quiz Questions

Key Concepts

5 concepts covered in this module.

Applying the Code & Standards

Real-world scenarios require judgment. Multiple standards may apply simultaneously. Focus on identifying which standards are relevant and what action is required.

Common Violation Patterns

Front-running (trading ahead of clients), churning (excessive trading for commissions), misrepresentation of credentials, selective disclosure, conflicts of interest.

Whistleblowing

Report violations internally first (supervisor/compliance). If no action, escalate. External reporting may be required by law. Protect yourself legally.

Soft Dollar Standards

Commissions used for research must benefit clients. Cannot use soft dollars for non-research expenses. Must disclose soft dollar arrangements.

Social Media & Communications

Same standards apply to social media as traditional communications. Must be factual, not misleading, and include proper disclosures.

Decision Frameworks

1 decision frameworks to guide your analysis.

How to handle suspected ethics violations?

  • Identify which standard(s) are at issue
  • Report to supervisor or compliance officer
  • Dissociate from the activity
  • Document everything

Mind Map

Visual overview of how concepts connect in this module.

Ethics Application
Common Violations
Front-running
Churning
Misrepresentation
Selective disclosure
Undisclosed conflicts
Response Protocol
Identify standards at issue
Report internally
Dissociate from violation
Document actions
Escalate if needed
Key Scenarios
MNPI situations
Gift acceptance
Client suitability
Performance reporting
Leaving an employer
Modern Issues
Social media rules
Soft dollars
Expert networks
AI and algorithms
Digital communications

Study Ethics Application

This module has 6 flashcards and 4 quiz questions to test your knowledge.

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