How did you /are you preparing Ethics Section

[ashrafS]

What method are you using to study this material.

Do you memorize or understand this section.

Let me put in another way, will your memory be tested in the exam through the type of question or the question is rather to test your understanding?

TKS

 

[bean]

I read the CFAI materials and it is probably best that you develop an understanding of how to apply the standards/guidelines/GIPS, etc. to real situations.

 

[CFAZod]

Memorized the Code of Ethics. Trying to develop deep understanding of all sections. For instance:

Section 1 b. Professionalism

An associate is engaging in illegal trading practices. He tells you to refrain from
disclosing this because it will make the firm look bad and it is highly profitable. You
should choose one of the three actions above. If you seek legal counsel and are told that
the activity is actually not illegal, you have covered your obligation. This assumes that
you believe the legal counsel to be competent. If you report this to your supervisor and
are told to ignore it, you should take steps to disassociate yourself from the practice.


How and in which ways do you "disassociate yourself" from an illegal activity in which your investigation has led you to?

 

[wxyz]

Q:
1, Does schweser's 2006 book covers the change of Ethics?

2, Ethics Qs from old sample exams (e.g. from CFA Institute) are still good? since some roules are changed more strict or looser? If not, where can we find new Q's for this session?

 

[gbcgrl]

Absolutely memorize it, and try to understand it as much as possible. A lot of people don't pay enough attention to the ethics because it all seems like good common sense stuff that everyone knows. Then you get to the exam, and rather than just asking if there was a violation, you will be asked which parts of the code were broken and why. Also, the GIPS section was tested in detail. I read the book, took notes, did the Schweser exams and used audio notes for the Ethics. I really think that for this topic, repetition is key. Go over it all one more time within a few days of the exam to refresh your memory, and you'll do fine.

Most of the people I sudied with only read the book once and maybe looked over the Schweser a bit. I was the only one to score >70. I am not smarter, I was just lucky that someone gave me a heads up on how they approach stuff on the exam. Be ready for very tricky questions, and ones that require specific details as well as understanding.

wxyz:

1.yes

2. You can't get new questions from CFAI, but Schweser will have the new LOS's incorporated in their exams for 06, I am sure.

 

[bean]

Hey gbcgrl- can you remember anything that Schweser didn't go that deep into but ended up being emphazised on the actual exam?

 

[wxyz]

gbcgrl, thx.
my concern is that Schweser has not enough new Q's for ethics, can we still use the old Qs from other sources, such as CFA Institue samples (year 2000 -- 2004)?

 

[CFAZod]

So it is true that the exam will ask you what specific standard was violated, including possible violations to several standards? This is the first time I am finding this.

 

[gbcgrl]

Please keep in mind that I wrote in 2005, before the new standards book was published, but the testing method will probably be similar. The exam questions were a lot like the Schweser one where they give you a scenario with two people interacting, then ask which one violated standard x : person 1, person 2, neither or both. They might also give a scenario and ask if 2 standards were breached - again, using format: standard 1, standard 2 , neither, or both.

Last year the GIPS were WAY overrepresented, and the questions were on minutiae. They generally test new concepts much more thoroughly than older ones, or so I have been told. You may not see as many GIPS as we did, but I would say be ready for a lot of the research objectivity standards, which I heard have changed (I actually haven't looked at the new standards yet).

There will also be questions that are just plain difficult to judge. There is a lot more grey on the exam than in the text (at least the old text; maybe the new one is better ). I remember a question from last June that people were still arguing about 2 weeks later. Even with books in front of them, there was no obvious right answer.

Just study as much as you can, and accept that it is next to impossible to get all of the ethics questions right. Just don't freak out on exam day if you miss some, you can miss at least 30% and still do well.

 

[bnpak1]

Practise with the ethics questions.. Practise....again & agian.