Loading...
CFA Level 3
Ethical and Professional Standards

Investment Process Compliance with the Asset Manager Code

Medium Asset Manager Code Investment Process

As part of your role as a compliance officer in an asset management firm, you are reviewing the firm’s investment process to ensure adherence to the CFA Institute's Asset Manager Code of Conduct. The code emphasizes transparency and integrity in the investment process, as well as consistent application of investment decisions across clients.

Recently, the firm has implemented a new investment strategy that allows portfolio managers to deviate from the standard process outlined in the firm’s investment policy. This strategy is expected to enhance performance but may lead to different outcomes for similar client portfolios. You need to assess whether this new approach complies with the principles of the Asset Manager Code.

Which of the following statements correctly reflects a violation of the principles outlined in the Asset Manager Code of Conduct regarding the investment process?

Hint

Submitted9.4K
Correct7.0K
% Correct74%