Definitions of terms found in the Code and Standards

Appropriate: Suitable and proper for the circumstances.

Beneficial Owner: A person or entity who ultimately owns, controls, has the power to direct, or has a material interest in a security or investment.

Care: Acting in a prudent and judicious manner to avoid harm.

Client: A person or entity for whom the member or candidate performs a professional service that is of the type usually provided in return for compensation.

Competence: Having sufficient knowledge, skills, and abilities to undertake an activity successfully.

Complete: Containing all facts and elements necessary to convey the information.

Conflict of Interest: Any matter that could reasonably be expected to impair independence and objectivity or raise a question about whether actions, judgment, or decision making is free from bias.

Diligence: Careful, consistent, and thorough work or effort.

Full and Fair Disclosure: The amount of disclosure necessary to provide accurate and complete information appropriate to the circumstances.

Independence: Free of bias; not influenced or controlled in matters of opinion or conduct.

Intent: The state of mind to act with a desire, plan, and determination to achieve a particular purpose.

Investments: Assets used to build wealth through earned income or appreciation.

Knowingly: Acting deliberately with awareness or consciousness.

Loyalty: Devotion, support for, or allegiance to a person or entity.

Material: Having weight or meaning that is reasonably likely to influence making a decision or taking action.

Misrepresentation: Any untrue statement of omission of fact or any statement that is false or misleading.

More Strict: Laws, rules, regulations, or practices that place greater restraint on conduct or provide greater protection of client interests.

Nonpublic: Information that has not been disseminated or is not available to investors in general.

Objectively: Not being influenced by personal feelings or interests or the interests of others when rendering opinions or considering or taking action.

Plain Language: Language that is clear, concise, uses common words, and is not dominated by technical or obscure wording or jargon.

Professional Activities/Professional Conduct: Any activity or conduct that relates to financial analysis, investment management, securities analysis, stewardship, or other similar professional endeavors and either 1) involves activity or conduct in the workplace, academia, or participation in the investment profession or securities markets OR 2) explicitly or implicitly encompasses use of the CFA charter, or CIPM designation, membership in CFA Institute or CFA Institute societies, or candidacy for a CFA Institute-sponsored designation.
Professional Responsibilities: The obligations and duties a member or candidate must fulfill as part of their work.

Prominent Language: Language that is placed so that it can be clearly seen or easily accessed by one receiving the information; not formatted to obscure its location or deemphasize its importance relative to other wording in the material (e.g., using a smaller font or relegating the information to a footnote or appendix).

Prospective Client: A person or entity that has expressed interest in retaining the services of a member or candidate or their firm or a person or entity to whom the member or candidate or their firm actively solicits or plans to solicit and who has the potential to become a client.

Prudence: Using caution and discretion to act with the skill and diligence that a reasonable person acting in a like capacity and familiar with such matters would use.

Reasonable: Using sound judgment, understanding, care, and caution appropriate under the circumstances when undertaking an action or making a decision; following a rational and well-considered process that is designed to remedy or address an issue or affect an outcome.

Relevant: Closely connected or related to, or having a bearing on, the activity undertaken or subject matter under discussion.

Securities: Financial assets that can be traded with the intent to profit from or to raise capital.