journals, undertaking self-study, or attending appropriate study groups.
Consultants shall not accept engagements unless they are competent in the specific area of expertise involved. If offered an engagement in an area where they are not competent, consultants shall either not accept the client, until and unless they have been able to obtain the appropriate level of competence, or seek the advice of qualified professionals and/or refer clients to those professionals.
Impact of the Standard
Compliance with this standard ensures that consultants fulfill their obligation to maintain a certain level of competence through continuing education and thereby continue to serve the best interests of the client.
STANDARD 4D – A CONSULTANT'S RESPONSIBILITY TO AVOID PLAGIARISM AND OTHER FORMS OF THEFT
It is the responsibility of the consultant to avoid using or copying materials prepared by another without proper authorization and acknowledgement.
Explanation
In addition to being unprofessional, plagiarism and other forms of theft are illegal.
Procedures for Compliance
If consultants wish to use the work of others, they must obtain the necessary permissions and include appropriate acknowledgments. Such acknowledgement includes, but is not limited to, identifying the author, publisher, and/or source of the material. While factual information such as that published by recognized financial and statistical reporting services may be used without acknowledgement, credit must be given to conclusions made by others that have been derived from the factual information.
Acknowledgement is to be made regardless of the medium used for communication (e.g., print, verbal, electronic). Acknowledgement may be made in the body of the communication or in a reference made in the body of the communication to a footnote that is easily available.
Impact of the Standard
Compliance with this standard promotes continued research and analytical efforts in the areas of investment management, performance, and investment consulting. Those who contribute to the investment consulting profession in this way may reconsider their efforts if their work is plagiarized.
STANDARD 4E – A CONSULTANT'S RESPONSIBILITY TO CONDUCT BUSINESS AND PERSONAL AFFAIRS PROFESSIONALLY AND ETHICALLY
Consultants have a responsibility to avoid conduct, in both their business and personal lives, that exhibits a lack of honesty, trustworthiness, or fitness to practice as a consulting professional.
Explanation
This standard goes beyond the requirements for technical compliance with rules and regulations and focuses on the integrity of consultants by prohibiting any professional or personal behavior that discredits the profession as a whole.
Procedures for Compliance
In all professional and personal activities, consultants shall abide by applicable laws and regulations, including those of IMCA. Consultants shall not engage in any acts of dishonesty, fraud, or misrepresentation that reflect negatively on professional competence or acts that indicate a general disrespect for the law.
Examples of such acts can include, but are not limited to:
■ Acts resulting in conviction of a felony
■ Acts resulting in conviction of a misdemeanor involving moral turpitude (e.g., lying, cheating, stealing)
■ Conduct that compromises the integrity of the CIMA or CIMC certification or the consulting profession as a whole
In addition to self-regulatory agencies such as the Financial Industry Regulatory Authority (FINRA), the investment industry is regulated by government agencies, including the Securities and Exchange Commission (SEC), and the Department of Labor, that monitor conduct and take disciplinary action in cases of unethical behavior. IMCA procedures for investigating complaints against CIMA and CIMC licensees and implementing disciplinary action, if required, are outlined in the IMCA Disciplinary Rules and Procedures.
On the whole, however, compliance with Standard 4e is a matter of a consultant's own personal integrity and moral character. Each consultant must be aware of the implications of all professional and personal actions. Any conduct that reflects poorly on the individual, the employer or firm, or the profession as a whole should not be tolerated. General compliance with this standard can be enhanced by strict observation of the following broad guidelines:
■ Abide by all statutory and regulatory requirements involving the delivery of consulting services.
■ Establish and maintain a standard of excellence in all aspects of investment management consulting.
■ Participate in IMCA activities designed to improve the consulting profession and uphold its reputation.
■ Maintain the highest standard of personal conduct at all times.
Impact of the Standard
In conjunction with the IMCA Code of Professional Responsibility, compliance with this standard helps to promote and maintain the highest standard of personal and professional conduct in the investment management consulting profession. This, in turn, serves to ensure public confidence in the integrity and services offered by professional investment management consultants.
Standard 5: Responsibilities to the Employer
STANDARD 5A – A CONSULTANT'S RESPONSIBILITY TO INFORM EMPLOYER OF THE IMCA CODE AND STANDARDS
Consultants shall make employers aware of the IMCA Code of Professional Responsibility and Standards of Practice.
Explanation
Informing employers about the IMCA Code and Standards promotes awareness of professional responsibility and ethical practices and thereby increases consultants' adherence to these rules of conduct. In addition, the Standards may serve as the basis of employee programs within the consultant's Standards designed to enhance ethical awareness and advocate honesty in interactions with clients.
Procedures for Compliance
Consultants shall provide copies of the IMCA Code of Professional Responsibility and IMCA Standards of Practice to the appropriate persons within their organizations, typically their supervisors and/or compliance officers.
Impact of the Standard
By ensuring the dissemination of the IMCA Code and Standards to supervisory individuals responsible for overseeing consultant practices, Standard 5a assists the employer in supervision of the consultant's interaction with clients and adherence to professional standards.
STANDARD 5B – A CONSULTANT'S RESPONSIBILITY TO DISCLOSE CONFLICTS OF INTEREST
Consultants shall disclose to employers all situations, ownership of securities, and/or memberships on boards or in organizations that could reasonably interfere with their duty to employers or their ability to make unbiased and objective recommendations and decisions regarding their consulting clients.
Explanation
This standard protects employers and, indirectly, clients by requiring consultants to disclose those situations and actions that may result in a conflict of interest. Examples of these disclosures include the following:
■ Recommending that clients invest in companies that use the consultant's services
■ Holding a seat on the board of an organization that employs them as a consultant
■ Maintaining a relationship with an investment advisor that could result in a conflict of interest
Procedures for Compliance
Consultants should notify their employers in writing of any situation that could lead to a conflict of interest, as outlined above. The consultant should retain copies of such notification.
Impact of the Standard
Adherence