I believe that all CFA candidates should be very familiar with the subject of morality, and this course is the focus of the examination throughout the first and second **. So, how to learn the CFA Level 1 professional ethics subject? What are the learning methods? Next, Mr. Rongyue will share with you the CFA Level 1 Moral Exam Preparation Strategy.
The Code of Ethics section lays a good foundation for the first level of study, and the latter two levels are relatively easy to review and can allocate more time to other subjects.
The review of the Code of Ethics section is summarized in the following three steps:
Step 1: Fully understand the content of each guideline
There are seven major guidelines in the ethics section, and there are several sub-guidelines under each criterion, and the main content of each sub-criterion is divided into four parts:
1.content:skimming. This section is an overview of the content of the guideline, which can be skimmed at the beginning and cross-referenced in the second step when summarizing the content of the guideline.
2.guidance: Read more. This part is a detailed interpretation of the content, with many details, and it is also the core of understanding the guidelines. Later notes can add case summaries and aid comprehension.
3.recommended procedures for compliance: skimming. This is a compliance recommendation given by the association, not a mandatory one. Understand the key points and integrate them into the notes in the guidance section.
4.Application of the Standards (Examples): Read more. This part is the case, and it is just as important as the guidance part. After reading each case, grasp the key words and briefly summarize the content.
Step 2: Summarize the content of each criterion at a high level so that it is easy to remember
Integrate the notes of the above four parts and condense them into a few words or a sentence summary, after all, there are seven major n small strips, each of which has a long list, and there is no meaning to generalize. This part is mainly for subsequent reading at any time and for quick review. If you find that you are not familiar with any of them, go back to the first step to see what it is.
Step 3: Read more cases and do more questions to strengthen understanding and analysis of similar clauses
Reading more cases is to deepen your understanding of the guidelines and learn to grasp key words.
The course of ethics especially needs to do more questions because:
1.Doing the questions is also reading the case. Some special cases can be added to the notes.
2.Ethics is similar to IELTS reading, and candidates who are good at English have more advantages, and they can save a little time in reading questions, which can be allocated to thinking and identifying options. If you are a slow English reader, you need to deliberately train to improve your reading speed during daily practice, and remember to time when doing questions, so as not to spend too much time on morality and affect the overall score.
3.There will be different settings for the question stem, "Which of the following criteria is violated" (common test method) and "Which of the following criteria is not violated" (advanced test method).
4.The option will put together the terms that have an inclusive relationship and need to be discerned.
Doing questions is the best way to really test how well you understand the guidelines.
Specifically, taking the article i(a) knowledge of the law as an example, the main contents of the first step are excerpted as follows:
Know the Law:
1) should be familiar with all applicable laws, rules and regulations & should know, and do not require all-rounders; For example, the IB department is divided into IPO and M&A teams, so M&A's employees only need to understand M&A-related laws, and are not required to master IPO-related laws.
2) the local law of the place where the product is sold; For example, the word "interest" should be avoided in Islamic documents.
3) Speech on social media and other platforms must also comply with relevant laws (social media).
Compliance with Laws:
Strict between the laws and CFA guidelines in the regions where business is conducted. This is the test point, and it is common to ask questions like "Can insider trading be carried out in country X if the law of country X does not prohibit insider trading".
The answer is no, because although the domestic law allows it, the CFA guidelines do not, and this situation strictly adheres to the CFA guidelines).
What to do if you find a violation:
The principle is to "dissociate".
Details include:
1) Liability cannot be exempted from mere consultation on suspected violations;
2) CFA does not require the person who discovers the violation to report it, as long as he dissociates, it is not considered a violation of Article I(A);
3) If a violation is discovered but no action is taken, it is considered to be a continuing violation of Article I(a).
4) Resolve includes: removing oneself from the violation report, applying for a change of group, and resigning (extreme cases).
The second step can be summarized as: "Know the relevant laws, abide by the strictest laws, and stay away from violations if you find them." To put it more simply: "know the law and abide by the law, and stay away from violations".
According to these three steps, summarize the notes of each small guideline, and each one uses a summary content + associative memory case. This treasure note can be used from level 1 to **, so it is highly recommended to study and summarize carefully when level 1.