The Investment Advisor Body of Knowledge + Test Bank. IMCA

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СКАЧАТЬ differently in readings or on their exams. In other words, learn how to use the formulas; do not simply memorize them.

      Candidates who report studying 100+ hours for the CIMA qualification exam and an additional 100+ hours for the certification exam demonstrate higher rates of success. Of course, the time needed to successfully comprehend and retain a sufficient amount of the material depends on several factors, including a candidate's existing knowledge and experience, study habits, focus, and determination.

      Good luck to all of you who are studying for your exams. We wish every success to all investment advisors and consultants in the field who are placing the needs of their clients first, constantly working to improve their own skills, and seeking to provide the best services possible. All the best.

      Additional Resources

      The following resource is available online at (www.wiley.com) to further assist CIMA candidates in their studies:

      ■ Quiz questions for each section

      Helpful Web Links

      IMCA – CIMA certification homepage: www.imca.org/cima

      CIMA certification process: www.imca.org/cima-certification-process

      CIMA study resources: www.imca.org/cima-study-resources

      CIMA registered education providers: www.imca.org/pages/registered-education-providers

      CIMA core topics: www.imca.org/pages/2014-CIMA-Core-Topics

      Notes

      IMCA^® is a registered trademark and Investment Management Consultants Association^SM and Certified Investment Management Analyst^SM are service marks of Investment Management Consultants Association Inc. and denote the highest quality of standards and education for financial professionals. CIMA^®, CIMC^®, and CPWA^® are registered certification marks of Investment Management Consultants Association Inc. Certified Private Wealth Advisor is a pending certification mark of Investment Management Consultants Association Inc. Investment Management Consultants Association Inc. does not discriminate in educational opportunities or practices on the basis of race, color, religion, gender, national origin, age, disability, or any other characteristic protected by law.

      Disclaimer: The CIMA Qualification and Certification Exam topics and exam weightings are taken from the CIMA Candidate Handbook as approved by the CIMA Certification Commission. IMCA's education department and the authors and editors of this manuscript have no knowledge of actual exam content. The material and content published in this manuscript are for educational review purposes only, and do not guarantee an exhaustive compendium of exam questions covered on the exams. The CIMA Certification Commission neither endorses nor recommends this material.

      CHAPTER 1

      IMCA Code of Professional Responsibility and Standards of Practice

      Investment advisors and consultants are responsible for following laws and standards enforced by numerous government agencies, industry self-regulatory bodies, and the firms at which they are employed. As a professional certification body, the Investment Management Consultants Association (IMCA) prescribes and enforces its own code of ethics and standards as is described through its Code of Professional Responsibility (“code”) and Standards of Practice (“standards”).

      The seven elements listed in IMCA's code serve as the core of IMCA's code of ethics. These seven code elements are designed to outline the key principles of IMCA's code. The code elements are listed in IMCA's standards under standard number one. Subsequent standards provide further explanation of code elements along with additional details of specific requirements and guidelines, further application of code elements, and numerous examples. In other words, the standards describe various code items in greater detail.

      The concepts of fiduciary responsibility, disclosure, conflicts of interest, confidentiality, compliance, and competence are all described and explained in the readings found in this chapter.

      Part I IMCA Code of Professional Responsibility

      Learning Objectives

      ■ List and explain the seven elements of IMCA's Code of Professional Responsibility.

      ■ Apply the seven code elements appropriately when given a set of facts or circumstances.

      Part II IMCA Standards of Practice

      Learning Objectives

      ■ Use IMCA's Standards of Practice to provide detailed explanations of the seven elements of IMCA's Code of Professional Responsibility.

      ■ Determine the ramifications based on IMCA's Standards of Practice when given a set of facts or circumstances.

      Part III IMCA Performance Reporting Standards

      Learning Objective

      ■ Differentiate between performance standards that must be observed (are required) and best practices.

      Part IV IMCA Disciplinary Rules and Procedures

      Learning Objectives

      ■ Describe the disciplinary rules and procedures that apply to CIMA^® designees.

      ■ Apply IMCA's disciplinary rules and procedures when given a set of facts or circumstances.

      Part V IMCA Guidelines Regarding the Acceptance of Benefits from Third Parties

      Learning Objectives

      ■ Describe IMCA's guidelines regarding a CIMA^® designee's acceptance of benefits from third parties.

      ■ Describe a CIMA^® designee's responsibilities for disclosing third-party benefits.

      Part I IMCA Code of Professional Responsibility

      This Code has been adopted to promote and maintain a high standard of professional conduct in the investment management consulting profession. All members of IMCA are expected to subscribe to the Code, which serves to ensure public confidence in the integrity and service offered by professional investment management consultants. Adherence to the Code is required of all IMCA designation holders.

      Each financial professional shall:

      1. Serve the financial interests of clients. Each professional shall always place the financial interests of the client first. All recommendations to clients and decisions on behalf of clients shall be solely in the best interest of the client.

      2. Disclose fully to clients services provided and compensation received. All financial relationships, direct or indirect, between consultants and investment managers, plan officials, beneficiaries, sponsors, or СКАЧАТЬ