Cis Code of Ethics and Standards of Professional Practice

4383 Words Apr 14th, 2012 18 Pages
Code of Ethics and Standards of Professional Conduct

CHARTERED INSTITUTE OF STOCKBROKERS
Chartered By Act 105 of 1992

May 13, 2010

Code of Ethics and Standards of Professional Conduct for Stockbrokers These CIS Code of Ethics and Standards of Professional Conduct for Stockbrokers have been prepared by the Chartered Institute of Stockbrokers (CIS). CIS Code of Ethics and Standards of Professional Conduct shall apply, in its entirety, to all members except where a member is practising outside Nigeria. Where a member is practising outside Nigeria, the member must: (a) if he/she is a member of the local association in the jurisdiction of employment or practice (“Local Association”) and that Local Association is a Member Society of the
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"Investment Action" is any activity in which Investment Professionals engage regarding securities, including the purchase and/or sale of securities for client, proprietary or personal accounts, the issuance of research reports, or any recommendation to purchase, sell or hold a security. "Fiduciary Duty" is the duty which is owed by a party who has a relationship of trust and confidence to another party. A person who has a fiduciary duty to another must act in the other's best interest, must maintain the other's trust and confidences, and must act with discretion. A fiduciary is held to a higher standard of care and higher degree of knowledge than the average person. "Beneficial owner" means someone who has: (a) a direct or indirect pecuniary interest in securities, regardless of whether or not the ownership of the said security is in the name of that person; or (b) the power to vote or direct the voting of shares of securities or investments; or (c) the power to dispose or direct the disposition of a security or investment. "Associate" means any related or affiliated party, or any person or entity that controls, is controlled by, or is under common control with an investment professional. As used in Standard 19.0, "associate" includes an investment professional's family members. "Independence", as used in Standard 3.0 to refer to advice given or investment action taken by an investment professional, means advice or