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IBBC CAPITAL ACADEMY / 2027

Integrated ethics cases and preventive procedures

Independent IBBC Capital draft content for self-study. Not affiliated with or endorsed by CFA Institute. New lessons await subject-matter review. No CFA designation or official PSM credit is awarded.

Learning goals

  • Explain classify the facts using mechanisms and limitations.
  • Explain decide and remediate using mechanisms and limitations.
  • Explain prevent recurrence using mechanisms and limitations.

Draft · approximately 25 minutes, excluding further revision.

Classify the facts

Read a case for facts about client duties, information, incentives and timing before choosing a Standard; one behavior can create several distinct violations.

A successful investment outcome does not cure misuse of confidential information, unsuitable advice or misleading reporting; judge the process and conduct independently of profit.

Decide and remediate

Disclosure addresses some conflicts but cannot authorize every prohibited act; identify when avoidance, consent, restriction or dissociation is required.

Escalation should protect relevant clients and preserve evidence while respecting legal obligations; invented procedural certainty is inappropriate where facts or law remain unresolved.

Prevent recurrence

Preventive procedures should target the failure mechanism, such as information barriers, independent model review, allocation rules or supervisory testing.

Explain a case answer by connecting evidence, duty, assessment and action; memorizing labels without justification can fail when a relevant fact changes.

Formula and assumptions

Case analysis=evidence + duty + conduct assessment + tailored corrective and preventive action

Original applied case: Integrated ethics cases and preventive procedures

  1. A fictional manager uses a private material tip, trades first personally, then recommends the stock to a client whose IPS prohibits it.
  2. Analyze information misuse, priority and suitability separately; a later gain does not cure any of these concerns.
  3. Restrict affected activity, preserve records, seek appropriate compliance review and redesign access, preclearance and mandate controls.

Errors to catch

  • Do not assume: Every case can involve only one Standard.
  • Do not assume: Profit cures all unethical conduct.
  • Do not assume: Disclosure permits any otherwise prohibited action.

Original knowledge check

Answer every question before checking. Review explanations after submitting; retry starts a new attempt.

Sources and coverage status

These original lessons are drafts. Public outlines are used to check scope; the official learning-outcome text and proprietary question banks are not reproduced here. Follow the source for exam-year requirements and updates.