IAR Ethical Standards & Professional Conduct

Question 1

A IAR professional discovers a conflict of interest. What is the MOST ethical action?

Accepted Answer

Disclose immediately and recuse if necessary

Answer

Ignore it if unnoticed

Answer

Handle it privately

Answer

Continue and document later

Question 2

What is the PRIMARY ethical obligation of a certified Investment Adviser Representative professional regarding confidential information?

Accepted Answer

Protect from unauthorized disclosure at all times

Answer

Share with helpful colleagues

Answer

Use to advance career

Answer

Discuss during networking

Question 3

When pressured to compromise IAR professional standards, the BEST response is to:

Accepted Answer

Document the pressure and uphold standards

Answer

Comply for workplace harmony

Answer

Ignore without reporting

Answer

Immediately resign

Question 4

Which scenario violates the Investment Adviser Representative code of professional conduct?

Accepted Answer

Misrepresenting qualifications or certification status

Answer

Seeking extra CE credits

Answer

Reporting safety concerns

Answer

Declining work outside competence

Question 5

Asked to provide IAR services outside scope of competence, the CORRECT response is to:

Accepted Answer

Decline and refer to a qualified professional

Answer

Accept for experience

Answer

Accept at lower rate

Answer

Accept and learn on the job

Question 6

What is the MOST important reason for Investment Adviser Representative professionals to maintain continuing education?

Accepted Answer

Stay current with evolving standards and regulations

Answer

Increase billing rates

Answer

Satisfy employer preferences

Answer

Accumulate credentials