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of the Standard

      By eliminating the potential for conflicts of interest through the disclosure of compensation and its sources, the consultant enhances the reputation of the consulting profession and IMCA.

      STANDARD 2C – A CONSULTANT'S RESPONSIBILITY TO PROVIDE ALL PERTINENT INFORMATION

      It is the responsibility of the consultant to provide each client with all requested information as well as all information available to the consultant that enables the client to make informed decisions.

      Explanation

      In a world where huge amounts of information are easily available via the Internet, clients can access data that may or may not be relevant to their situations or that may be biased or incorrect. Even if relevant, correct, and unbiased, information and data do not translate to experience and knowledge. The consultant is responsible for fully researching all available information, determining the implications of that information for the client's situation, and providing full and objective comments.

      Procedures for Compliance

      Consultants have a professional responsibility to research every relevant and applicable situation presented to them by clients to the fullest extent possible. In all instances, the consultant must inform the client of all aspects known to be relevant to a particular situation, positive or negative. Information shall be presented in an objective and unbiased manner to assist clients in understanding progress toward their goals. This information also shall be made available with a frequency that ensures meaningful communication between the consultant and client. Such information shall relate directly to the client's goals and financial situations.

      Impact of the Standard

      By complying with this standard and presenting all information known to the consultant regarding the client's situation, consultants can help clients weigh the impact of their decisions in the light of full disclosure. This enhances the reputation of the investment consulting profession and IMCA as the professional sources of information, applicability, and objectivity.

      STANDARD 2D – A CONSULTANT'S RESPONSIBILITY TO MAINTAIN CLIENT CONFIDENTIALITY AND PRIVACY

      Consultants have a responsibility to maintain the full privacy and confidentiality of all information provided to them by both institutional and individual clients.

      Explanation

      Institutions, including public funds, and individuals not only have the right to but the need for highly professional, candid, and confidential relationships with their consultants. In order to provide informed professional advice, a consultant must have access to all relevant information involving a client's financial situation, investment status, and goals. By acknowledging the privacy policy relating to the confidentiality of client information and the client/consultant relationship, the consultant will be more likely to obtain a full and candid disclosure of the required information.

      Procedures for Compliance

      Consultants shall advise clients of the privacy policy that applies to their relationship and assure them that all information gathered is of a strictly confidential nature. In addition, the compliance officer at the consultant's firm shall be notified of Standard 2d and the consultant's code of confidentiality.

      All client records and information relating to financial situations and goals shall be kept private and confidential by the consultant. Even the disclosure of a client's name without obtaining prior permission from the client is prohibited. The use of client lists that may influence a potential client's decision relative to a consultant's capability is discouraged.

      If professional references are requested by new or potential clients, consultants must obtain approval from existing clients in similar industries and situations prior to disclosing the names of these clients.

      On no occasion shall the consultant disclose the financial status, goals, structure, or other information relating to any client to any other person or body unless legally required to do so. While certain situations may have similar structures and resolutions, any disclosure of a client's situation disenfranchises the privacy of the client/consultant relationship.

      Regarding public funds, consultants may provide, if requested, information that exists in the public domain regarding public fund clients.

      Impact of the Standard

      Adherence to this standard improves the disclosure of information between the consultant and client and heightens the professionalism of the relationship.

      STANDARD 2E – A CONSULTANT'S RESPONSIBILITY TO MAINTAIN COMPETENCE

      Consultants have a responsibility to maintain competence through the highest ethical, professional, and ongoing educational practices within their means.

      Explanation

      The ability to render advice in a knowledgeable, professional, candid, and objective fashion is a basic requirement for establishing client trust. In order to have confidence in the advice being rendered, the client must have reason to fully trust the consultant's competencies and capabilities.

      Procedures for Compliance

      Consultants shall advise clients, partners, and their firms of their commitment to upholding professionalism through compliance with this standard.

      Impact of the Standard

      By adhering to this standard, the consultant assures clients that their consulting needs will be met competently and professionally.

      Standard 3: Responsibilities to the Public

      STANDARD 3A – A CONSULTANT'S RESPONSIBILITY TO ABSTAIN FROM USE OF MATERIAL NONPUBLIC INFORMATION

      Consultants who receive material nonpublic information in confidence have a responsibility to abstain from disclosure or use of that information, whether or not such use would cause harm to a client.

      Explanation

      By nature of their profession, consultants hold a unique position of trust and are bound by rules of professional confidentiality. Unless required by law, they may not disclose private information revealed by reason of that profession or position.

      Procedures for Compliance

      Consultants shall not disclose any confidential client information without the specific consent of the client unless in response to proper legal or regulatory processes. The use of client information for personal benefit is improper, even if it does not cause harm to the client.

      Consultants who possess material nonpublic information related to the value of a security shall not trade or cause others to trade in that security if such trading would breach a duty or if the information was misappropriated or relates to a tender offer. If material nonpublic information is disclosed in breach of a duty, the consultant shall make all reasonable efforts to achieve public dissemination of such information.

      Impact of the Standard

      Adherence to this standard enhances the reputation of consultants, both professionally and personally, and helps to ensure that CIMA^® and CIMC^® certificants and IMCA members are recognized as maintaining the highest standards of conduct.

      STANDARD 3B – A CONSULTANT'S RESPONSIBILITY TO MAKE PROPER USE OF CERTIFIED INVESTMENT MANAGEMENT ANALYST^® AND CERTIFIED INVESTMENT MANAGEMENT CONSULTANT^® CERTIFICATIONS

      Consultants have a responsibility to ensure that the CIMA and CIMC certifications are used only by those who meet IMCA requirements. Specifications for proper use of the certifications have been established by IMCA.

      Explanation

      The CIMA and CIMC certifications are intended to enhance public awareness of the investment management consulting profession and reflect the high standards set by IMCA. To protect the status of these certifications, their use has been regulated by IMCA, and CIMA and CIMC licensees are to use these

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