Standard III – Duties to Clients (2025 Level III CFA® Exam – Ethics – Reading 32)

Prepare for CFA® Level III Ethics with this lesson on Standard III – Duties to Clients and Prospective Clients. Learn how to apply Loyalty, Prudence and Care, Fair Dealing, Suitability, Performance Presentation, and Preservation of Confidentiality to CFA exam-style scenarios. This lesson breaks down key CFA Institute guidance and practical exam concepts, including identifying the actual client, soft-dollar arrangements, proxy voting, investment policy statements, diversification, unsolicited trading requests, GIPS, and protecting client information. What You'll Learn: ✓ Loyalty, Prudence and Care ✓ Identifying the actual client and placing client interests first ✓ Developing and reviewing an investment policy statement ✓ Soft-dollar arrangements and brokerage commissions ✓ Proxy voting and economic value to clients ✓ Fair dealing with clients ✓ Investment recommendations and investment actions ✓ Suitability and the client's total portfolio ✓ Diversification and unsolicited trading requests ✓ Index, mandate, and strategy requirements ✓ Performance presentation and credible performance information ✓ GIPS and performance disclosure ✓ Preservation of confidentiality ✓ Handling former and prospective client information ✓ Client information, third-party storage, and accidental disclosure ✓ Applying Standard III to CFA® exam-style questions Chapters: 0:03 Introduction to Standard III – Duties to Clients 0:17 Loyalty, Prudence and Care 1:00 Brokerage Commissions and Client Interests 2:06 Key Guidance Under Loyalty, Prudence and Care 3:44 Identifying the Actual Client 5:54 Developing the Client's Portfolio 7:07 Soft-Dollar Arrangements 10:13 Proxy Voting 11:17 Monitoring and Disclosure 12:21 Responsibilities to Clients 12:55 Excessive Trading and Client Interests 14:09 Fair Dealing 16:33 Investment Recommendations 17:17 Fair Dealing in Investment Actions 18:55 Fair Dealing Exam Question 20:16 Suitability 23:20 Developing an Investment Policy Statement 25:26 Updating the Investment Policy Statement 25:59 Diversification 27:04 Unsolicited Trading Requests 27:45 Indexes, Mandates, and Investment Strategies 29:27 Performance Presentation 32:21 GIPS and Performance Disclosure 34:21 Preservation of Confidentiality 36:40 Confidentiality Exam Guidance 38:33 Third-Party Storage of Client Information 38:58 Confidentiality and Illegal Activities 40:05 Conclusion and Exam Review CFA® Exam Preparation Resources: CFA Level I:https://analystprep.com/shop/cfa-leve... CFA Level II:https://analystprep.com/shop/cfa-leve... CFA Level III:https://analystprep.com/shop/cfa-leve... Follow AnalystPrep for more CFA® and finance education content: Facebook:   / analystprep   Instagram:   / analyst_prep   LinkedIn:   / analystprep   #CFA #CFALevel3 #CFALevelIII #CFAExam #CFAExamPrep #CFAEthics #CFAEthicsExam #StandardIII #DutiesToClients #FairDealing #Suitability #InvestmentManagement #PortfolioManagement #CFAStudy #CFAStudyMaterials #AnalystPrep #FinanceEducation