Conduct And Practices Handbook (Cph) Exam 136 Questions With Answers,100% Correct

Tone at the top {Ans: This is an ideal that most firms strive for where there is a climate of ethical behaviour that allows trust to flourish. It should filter down through the organization and every employee must communicate the firm's guiding beliefs to other members or clients of the firm.}Morals {Ans: These are the rules and habits of a society's conduct that are established according to perceived standards of right and wrong. They are principles that are based on reason, not established, nor can be changed by authoritative bodies. They do however, underpin decisions made by those authorities}Know Your Product (KYP) {Ans: This refers to obligation #2 of a registered representative (RR) about understanding the products you recommend. Every registered representative (RR) must have this knowledge before recommending the purchase of any investment product to a client. You must understand how it is constructed and how it is likely to perform in various market conditions, as well as how new/non-tradition/complex/structured products function. This is the companion obligation of the KYC.}Fiduciary duty {Ans: This is a concept related to the duty of care. It is a higher standard imposed by common law. It exists in circumstances