IRAAA™ Member Code of Conduct
Overview
Preamble and Applicability
The Code of Ethics & Conduct (Code of Conduct) has been adopted by IRA Association of America Conduct Committee (IRAAA Conduct Committee) to provide principles and rules to all persons whom it has recognized and certified to use the IRAAA™, IRA Association of America™ MEMBER, IRA Association of America™ and certification marks (collectively “the marks”). IRAAA Conduct Committee determines who is certified and thus authorized to use the marks. Implicit in the acceptance of this authorization is an obligation not only to comply with the mandates and requirements of all applicable laws and regulations but also to take responsibility to act in an ethical and professionally responsible manner in all professional services and activities.
For purposes of this Code of Conduct, a person recognized and certified by IRAAA Conduct Committee to use the marks is called an IRAAA Member. This Code of Conduct applies to IRAAA Members actively involved in the practice of any professional activity in which the marks are used in the performance of professional responsibilities. This Code of Conduct also applies to candidates for any IRAAA™ certification or designation who are registered as such with IRAAA Conduct Committee.
Composition and Scope
The Code of Conduct consists of two parts: Part I – Principles and Part II – Rules. The Principles are statements expressing in general terms the ethical and professional ideals that IRAAA Members are expected to display in their professional activities. As such, the Principles are aspirational in character but are intended to provide a source of guidance for IRAAA Members. The comments following each Principle further explain the meaning of the Principle. The Rules in Part II provide practical guidelines derived from the tenets embodied in the Principles. As such, the Rules describe the standards of ethical and professionally responsible conduct expected of IRAAA Members in particular situations. This Code of Conduct does not undertake to define standards of professional conduct of IRAAA Members for purposes of civil liability.
Due to the nature of an IRAAA Member’s particular field of endeavor, certain Rules may not be applicable to that IRAAA Member’s activities. An IRAAA Member is obligated to determine what responsibilities he or she has in each professional relationship including, for example, duties that arise in particular circumstances from a position of trust or confidence that a IRAAA Member may have. The IRAAA Member is obligated to meet those responsibilities.
The Code of Conduct is structured so that the presentation of the Rules parallels the presentation of the Principles. For example, the Rules which relate to Principle 1 – Integrity are numbered in the 100 to 199 series, while those Rules relating to Principle 2 – Objectivity are numbered in the 200 to 299 series.
Compliance
IRAAA Conduct Committee requires adherence to this Code of Conduct by all IRAAA Members. Compliance with the Code of Conduct, individually and by the profession as a whole, depends on each IRAAA Member’s knowledge of and voluntary compliance with the Principles and applicable Rules, on the influence of fellow professionals and public opinion, and on disciplinary proceedings, when necessary, involving IRAAA Members who fail to comply with the applicable provisions of the Code of Conduct.
Part I – Principles
These Code of Conduct’ Principles express the profession’s recognition of its responsibilities to the public, to clients, to colleagues and to employers. They apply to all IRAAA Members and provide guidance to them in the performance of their professional services.
Principle 1 – Integrity
An IRAAA Member shall offer and provide professional services with integrity. As discussed in “Composition and Scope,” IRAAA Members may be placed by clients in positions of trust and confidence. The ultimate source of such public trust is the IRAAA Member’s personal integrity. In deciding what is right and just, an IRAAA Member should rely on his or her integrity as the appropriate touchstone. Integrity demands honesty and candor which must not be subordinated to personal gain and advantage. Within the characteristic of integrity, allowance can be made for innocent error and legitimate difference of opinion; but integrity cannot co-exist with deceit or subordination of one’s principles. Integrity requires an IRAAA Member to observe not only the letter but also the spirit of this Code of Conduct.
Principle 2 – Competence
An IRAAA Member shall provide services to clients competently and maintain the necessary knowledge and skill to continue to do so in those areas in which the IRAAA Member is engaged.
One is competent only when he or she has attained and maintained an adequate level of knowledge and skill, and applies that knowledge effectively in providing services to clients. Competence also includes the wisdom to recognize the limitations of that knowledge and when consultation or client referral is appropriate. An IRAAA Member shall make a continuing commitment to learning and professional improvement.
Principle 3 – Fairness
IRAAA Member shall perform professional services in a manner that is fair and reasonable to clients, principals, partners and employers, and shall disclose conflict(s) of interest in providing such services. Fairness requires impartiality, intellectual honesty and disclosure of conflict(s) of interest. It involves a subordination of one’s own feelings, prejudices and desires so as to achieve a proper balance of conflicting interests. Fairness is treating others in the same fashion that you would want to be treated and is an essential trait of any professional.
Principle 4 – Confidentiality
IRAAA Member shall not disclose any confidential client information without the specific consent of the client unless in response to proper legal process, to defend against charges of wrongdoing by the IRAAA Member or in connection with a civil dispute between the IRAAA Member and client.
Principle 5 – Professionalism
An IRAAA Member’s conduct in all matters shall reflect credit upon the IRAAA membership. An IRAAA Member also has an obligation to cooperate with fellow IRAAA Members to enhance and maintain the profession’s public image and to work jointly with other IRAAA Members to improve the quality of services. It is only through the combined efforts of all IRAAA Members, in cooperation with other professionals, that this vision can be realized.
Principle 6 – Diligence
An IRAAA Member shall act diligently in providing professional services. Diligence is the provision of services in a reasonably prompt and thorough manner. Diligence also includes proper planning for, and supervision of, the rendering of professional services.
Part II – Rules
As stated in Part I – Principles, the Principles apply to all IRAAA Members. However, due to the nature of an IRAAA Member’s particular field of endeavor, certain Rules may not be applicable to that IRAAA Member’s activities. The universe of activities engaged in by an IRAAA Member is indeed diverse and a particular IRAAA Member may be performing all, some or none of the typical services provided by Unlimited™ Retirement Account strategy professionals. As a result, in considering the following Rules, an IRAAA Member must first recognize what specific services he or she is rendering and then determine whether or not a specific Rule is applicable to those services. To assist the IRAAA Member in making these determinations, this Standards of Professional Conduct includes a series of definitions of terminology used throughout the Code of Conduct. Based upon these definitions, an IRAAA Member should be able to determine which services he or she provides and, therefore, which Rules are applicable to those services.
Rules that Relate to the Principle of Integrity
Rule A1
An IRAAA Member shall not solicit clients through false or misleading communications or advertisements:
Misleading Advertising: An IRAAA Member shall not make a false or misleading communication about the size, scope or areas of competence of the IRAAA Member’s practice or of any organization with which the IRAAA Member is associated; and
Promotional Activities: In promotional activities, an IRAAA Member shall not make materially false or misleading communications to the public or create unjustified expectations regarding matters relating to their professional activities and competence of the IRAAA Member. The term “promotional activities” includes, but is not limited to, speeches, interviews, books and/or printed publications, seminars, radio and television shows, and video cassettes; and
Representation of Authority: An IRAAA Member shall not give the impression that an IRAAA Member is representing the views of IRAAA Conduct Committee or any other group unless the IRAAA Member has been authorized to do so. Personal opinions shall be clearly identified as such.
Rule A2
Throughout the course of professional activities, an IRAAA Member shall not engage in conduct involving dishonesty, fraud, deceit or misrepresentation, or knowingly make a false or misleading statement to a client, employer, employee, professional colleague, governmental or other regulatory body or official, or any other person or entity.
Rule A3
An IRAAA Member has the following responsibilities regarding funds and/or other property of clients:
In exercising custody of, or discretionary authority over, client funds or other property, an IRAAA Member shall act only in accordance with the authority set forth in the governing legal instrument (e.g., special power of attorney, trust, letters testamentary, etc.); and
An IRAAA Member shall not commingle client funds or other property with an IRAAA Member’s personal funds and/or other property or the funds and/or other property of an IRAAA Member’s firm. Commingling one or more clients’ funds or other property together is permitted, subject to compliance with applicable legal requirements and provided accurate records are maintained for each client’s funds or other property; and
An IRAAA Member who takes custody of all or any part of a client’s assets for investment purposes, shall do so with the care required of a fiduciary.
Rules that Relate to the Principle of Objectivity
Rule B1
An IRAAA Member shall exercise reasonable and prudent professional judgment in providing professional services.
Rule B2
Each IRAAA Member, when providing products or services to his or her client, shall act in the interest of the client.
Rules that Relate to the Principle of Competence
Rule C1
An IRAAA Member shall keep informed of developments in the field of Self-Directed Retirement Account Investment and participate in continuing education throughout the IRAAA Member’s professional career in order to improve professional competence in all areas in which the IRAAA Member is engaged. As a distinct part of this requirement, an IRAAA Member shall satisfy all minimum continuing education requirements established for IRAAA Members by IRAAA Conduct Committee.
Rule C2
An IRAAA Member shall offer advice only in those areas in which the IRAAA Member has competence. In areas where the IRAAA Member is not professionally competent, the IRAAA Member shall seek the counsel of qualified individuals and/or refer clients to such parties.
Rules that Relate to the Principle of Fairness
Rule D1
When rendering professional services, an IRAAA Member shall disclose to the client:
Material information relevant to the professional relationship, including, conflict(s) of interest, the IRAAA Member’s business affiliation, address, telephone number, credentials, qualifications, licenses, compensation structure and any agency relationships, and the scope of the IRAAA Member’s authority in that capacity; and
The information required by all laws applicable to the relationship in a manner complying with such laws.
Rule D2
An IRAAA Member in a professional engagement shall make timely written disclosure of all material information relative to the professional relationship. In all circumstances and prior to the engagement, an IRAAA Member shall, in writing:
Disclose conflict(s) of interest and sources of compensation; and
Inform the client or prospective client of his/her right to ask at any time for information about the compensation of the IRAAA Member.
Rule D3
Upon request by a client or prospective client, the IRAAA Member in a professional engagement shall communicate in reasonable detail the requested compensation information related to the professional engagement, including compensation derived from implementation. The disclosure may express compensation as an approximate dollar amount or percentage or as a range of dollar amounts or percentages. The disclosure shall be made at a time and to the extent that the requested compensation information can be reasonably ascertained. Any estimates shall be clearly identified as such and based on reasonable assumptions. If an IRAAA Member becomes aware that a compensation disclosure provided pursuant to this rule has become significantly inaccurate, he/she shall provide the client with corrected information in a timely manner.
Rule D4
The disclosures required of an IRAAA Member in a Unlimited Retirement Account engagement described under Rule D2 shall be offered at least annually for current clients, and provided if requested.
Rule D5
An IRAAA Member’s compensation shall be fair and reasonable.
Rule D6
An IRAAA Member who is an employee shall perform professional services with dedication to the lawful objectives of the employer and in accordance with this Code of Conduct.
Rule D7
An IRAAA Member shall:
Advise his/her employer of outside affiliations which reasonably may compromise service to an employer;
Provide timely notice to his/her employer and clients about change of IRAAA™ membership status; and
Provide timely notice to clients, unless precluded by contractual obligations, about change of employment.
Rule D8
An IRAAA Member shall inform his/her employer, partners or co-owners of compensation or other benefit arrangements in connection with his or her services to clients, which are in addition to compensation from the employer, partners or co-owners for such services.
Rule D9
If an IRAAA Member enters into a personal business transaction with a client, separate from regular professional services provided to that client, the transaction shall be on terms which are fair and reasonable to the client and the IRAAA Member shall disclose, in writing, the risks of the transaction, conflict(s) of interest of the IRAAA Member, and other relevant information, if any, necessary to make the transaction fair to the client.
Rules that Relate to the Principle of Confidentiality
Rule E1
IRAAA Member shall not reveal — or use for his or her own benefit — without the client’s consent, any personally identifiable information relating to the client relationship or the affairs of the client, except and to the extent disclosure or use is reasonably necessary:
To effect a transaction for the client, or as otherwise impliedly authorized in order to carry out the client engagement; or
To comply with legal requirements or legal process; or
To defend the IRAAA Member against charges of wrongdoing; or
In connection with a civil dispute between the IRAAA Member and the client.
For purposes of this rule, the proscribed use of client information is improper whether or not it actually causes harm to the client.
Rule E2
An IRAAA Member shall maintain the same standards of confidentiality to employers as to clients.
Rule E3
An IRAAA Member doing business as a partner or principal of a professional services firm owes the IRAAA Member’s partners or co-owners a responsibility to act in good faith. This includes, but is not limited to, adherence to reasonable expectations of confidentiality both while in business together and thereafter.
Rules that Relate to the Principle of Professionalism
Rule F1
An IRAAA Member shall use the marks in compliance with the rules and regulations of IRAAA Conduct Committee, as established and amended from time to time.
Rule F2
An IRAAA Member who has knowledge, which is not required to be kept confidential under this Code of Conduct, that another IRAAA Member has committed a violation of this Code of Conduct which raises substantial questions as to the designee’s honesty, trustworthiness or fitness as a IRAAA Member in other respects, shall promptly inform IRAAA Conduct Committee. This rule does not require disclosure of information or reporting based on knowledge gained as a consultant or expert witness in anticipation of, or related to, litigation or other dispute resolution mechanisms. For purposes of this rule, knowledge means no substantial doubt.
Rule F3
An IRAAA Member who has knowledge, which is not required under this Code of Conduct to be kept confidential, and which raises a substantial question of unprofessional, fraudulent or illegal conduct by a IRAAA Member or professional, shall promptly inform the appropriate regulatory and/or professional disciplinary body. This rule does not require disclosure or reporting of information gained as a consultant or expert witness in anticipation of, or related to, litigation or other dispute resolution mechanisms. For purposes of this Rule, knowledge means no substantial doubt.
Rule F4
An IRAAA Member who has reason to suspect illegal conduct within the IRAAA Member’s organization shall make timely disclosure of the available evidence to the IRAAA Member’s immediate supervisor and/or partners or co-owners. If the IRAAA Member is convinced that illegal conduct exists within the IRAAA Member’s organization, and that appropriate measures are not taken to remedy the situation, the IRAAA Member shall, where appropriate, alert the appropriate regulatory authorities, including IRAAA Conduct Committee, in a timely manner.
Rule F5
In all professional activities an IRAAA Member shall perform services in accordance with:
Applicable laws, rules and regulations of governmental agencies and other applicable authorities; and
Applicable rules, regulations and other established policies of IRAAA Conduct Committee.
Rule F6
A IRAAA Member shall not engage in any conduct which reflects adversely on his or her integrity or fitness as a IRAAA Member, upon the marks, or upon the profession.
Rule F7
An IRAAA Member shall not practice any other profession or offer to provide such services unless the IRAAA Member is qualified to practice in those fields and is licensed as required by state law.
Rule F8
An IRAAA Member shall return the client’s original records in a timely manner after their return has been requested by a client.
Rule F9
An IRAAA Member shall not bring or threaten to bring a disciplinary proceeding under this Code of Conduct, or report or threaten to report information to IRAAA Conduct Committee pursuant to Rules F2 and/or F3, or make or threaten to make use of this Code of Conduct for no substantial purpose other than to harass, maliciously injure, embarrass and/or unfairly burden another IRAAA Member.
Rule F10
An IRAAA Member shall comply with all applicable renewal requirements established by IRAAA Conduct Committee including, but not limited to, payment of the regular IRAAA Member fee as well as comply with any other requests set forth by IRAAA Conduct Committee.
Rules that Relate to the Principle of Diligence
Rule G1
An IRAAA Member shall provide services diligently.
Rule G2
An IRAAA Member shall enter into a client engagement only after securing sufficient information to satisfy the IRAAA Member that:
The relationship is warranted by the individual’s needs and objectives; and
The IRAAA Member has the ability to either provide requisite competent services or to involve other professionals who can provide such services.
Rule G3
An IRAAA Member shall make and/or implement only recommendations which are suitable for their client.
Rule G4
Consistent with the nature and scope of the engagement, an IRAAA Member shall make a reasonable investigation regarding the product and service solutions recommended to clients. Such an investigation may be made by the IRAAA Member or by others provided the IRAAA Member acts reasonably in relying upon such investigation.
Rule G5
A IRAAA Member shall properly supervise subordinates with regard to their delivery of professional services, and shall not accept or condone conduct in violation of this Code of Conduct.
Complaint Procedures
The following information is being provided in an effort to assist the public in becoming acquainted with IRAAA Conduct Committee’s investigation and complaint procedures while encouraging IRAAA Members to maintain high ethical standards. These procedures provide for a thorough review and a decision as to whether there has been a violation of IRAAA Conduct Committee’s Code of Conduct and Professional Responsibility or non-compliance with IRAAA Member Standards and if internal sanction is warranted.
A charge against the conduct, actions or recommendations of an IRAAA MEMBER is a matter that IRAAA Conduct Committee takes seriously. Accordingly, if you feel that the Code of Conduct and Professional Responsibility has been violated or that there has been a lack of compliance with IRAAA Member Standards, you should not hesitate to begin the grievance procedure against an IRAAA Member.
The IRAAA Conduct Committee determines whether allegations are justified and whether the unethical or unprofessional conduct warrants disciplinary action. There is no cost to you.
Because one of the functions of IRAAA Conduct Committee is the evaluation of grievances, please be assured that your grievance will be investigated vigorously and impartially.
Ethics and Discipline
When authorized to use the IRAAA™, IRAAA™ MEMBER and IRAAA™ certification marks (the “IRAAA™ marks”), an IRAAA™ MEMBER agrees to abide by the Code of Ethics & Conduct and to comply with the philosophy and mission of IRAAA Conduct Committee.
A grievance filed against a member must be considered very carefully since it could negatively affect an IRAAA member’s career, reputation and ability to earn a living. Thus, it takes more than a claim of misconduct to justify disciplinary action. Proof of misconduct must be established by a preponderance of the evidence.
A grievance should relate to unethical conduct — a violation of IRAAA Conduct Committee’s Code of Ethics & Conduct — that can be proven by evidence. An honest disagreement about how a matter should or should not have been handled would not normally constitute unethical conduct. An error in judgment is not necessarily unethical conduct. IRAAA MEMBERS, as any other professionals, may not always give the perfect response to a given set of circumstances.
For instance, disagreements about fees do not necessarily constitute unethical conduct. The length of time it may take to respond to a client does not necessarily constitute unethical conduct.
Disciplinary Procedures
Disciplinary Process and Procedures
The disciplinary procedures of IRAAA Conduct Committee have been devised to ensure a fair and reasonable process for an IRAAA MEMBER against whom allegations of Code of Conduct violations are brought.
Request for Investigation – Upon receipt of a written complaint, the IRAAA Conduct Committee reviews the allegations to determine if further investigation is warranted.
Investigation – If the IRAAA Conduct Committee determines to proceed with an investigation, an IRAAA MEMBER is given written notice of the investigation, which contains the general nature of the allegations. Then the case is presented to and heard by the IRAAA Conduct Committee of Advisors during their periodic meeting. At such a meeting the IRAAA Conduct Committee will take into consideration all relevant information and take action.
Probable Cause Determination – IRAAA Conduct Committee Staff determines if there is probable cause to believe grounds for discipline exist. If so, staff will issue a formal complaint against the IRAAA MEMBER and a notice of pending action. If seen fit and notified in writing to IRAAA MEMBER, the IRAAA MEMBER’S right to use the IRAAA marks is administratively revoked until further action is taken by IRAAA in response to the investigation and proceedings.
Forms of Discipline
If grounds for discipline have been established, the IRAAA Conduct Committee may impose any of the forms of discipline below. All disciplinary actions, except private written censure, may be publicly disseminated.
Suspension of the right to use the IRAAA marks for a specified period of time, not to exceed five years
Permanent revocation of the right to use the IRAAA marks.
Grounds for Discipline
Misconduct by an IRAAA MEMBER, including the following acts or omissions, constitutes grounds for discipline, whether or not the misconduct occurred in the course of a client relationship:
any act or omission which violates the provisions of IRAAA Conduct Committee’s Code of Ethics & Conduct (Code of Conduct)
any act or omission which violates the criminal laws of any state or of the U.S.
any act which is the proper basis for suspension of a professional license
failure to respond to a request by the IRAAA Conduct Committee without good cause
obstruction of the IRAAA Conduct Committee’s performance of its duties
any false or misleading statement made to IRAAA Conduct Committee
This list is not exclusive, and there may be other acts or omissions amounting to unprofessional conduct, which may also constitute grounds for discipline.
Common Questions
How Long Does it Take?
The length of time it will take to deal with any particular grievance is difficult to determine in advance. A grievance regarding the handling of a complex matter would take more time to investigate than a simple grievance.
The IRAAA Conduct Committee generally processes grievances in the order in which they are filed and as quickly as the process will allow and will notify you when it has received your information. Additionally, you will be notified when the matter has been concluded. The IRAAA Conduct Committee will only inform you of any public discipline imposed.
Some Things You Should Not Expect
You should not expect that a grievance will be decided solely on the basis of what the complainant claims to have happened, just as the matter will not necessarily be decided solely on the basis of the answer submitted by the respondent. The final decision must depend on the weight of all available information.
The disciplinary process cannot necessarily be expected to solve your original problems. You should not expect, as a result of your grievance to us, to receive monetary compensation through IRAAA Conduct Committee. Disciplinary proceedings are restricted to the question of ethical conduct of IRAAA MEMBERS.
IRAAA Conduct Committee can act only to enforce its Code of Ethics & Conduct. Enforcement measures include private censure, public letter of admonition, and suspension or revocation of the right to use the IRAAA marks.
Grievances can be submitted to IRAAA Conduct Committee via U.S. mail or online.
Mail to:
IRAAA Conduct Committee
600 17th St #2800
Denver, CO 80202
ATTN: Professional Review Department.
Your written grievance should include important information surrounding the circumstances of your complaint, including photocopies of relevant letters, contracts, agreements or other documents, which should be accompanied with the grievance form. IRAAA Conduct Committee staff will request additional information if needed and may request a personal interview if it appears necessary.
The public should be aware of normal remedies under state and federal laws and regulations with applicable regulatory bodies and also avail themselves of other avenues. The burden should be on the complainant to pursue such remedies. The findings and actions of appropriate regulatory bodies will be given due consideration by the Board.
Public Disciplinary Actions
IRAAA Conduct Committee’s public disciplinary action can take one of three forms — a public Letter of Admonition, a temporary suspension of the individual’s right to use IRAAA marks or a permanent revocation of the individual’s IRAAA membership — depending on the severity of the breach, any mitigating or aggravating circumstances, and the individual’s cooperation with the Board’s investigation.
Your written grievance should include important information surrounding the circumstances of your complaint, including photocopies of relevant letters, contracts, agreements or other documents, which should be accompanied with the grievance form. IRAAA™ Board staff will request additional information if needed and may request a personal interview if it appears necessary.
The public should be aware of normal remedies under state and federal laws and regulations with applicable regulatory bodies and also avail themselves of other avenues. The burden should be on the complainant to pursue such remedies. The findings and actions of appropriate regulatory bodies will be given due consideration by the Board.
Public Disciplinary Actions
IRAAA™ Board’s public disciplinary action can take one of three forms — a public Letter of Admonition, a temporary suspension of the individual’s IRAAA™ certification or a permanent revocation of the individual’s IRAAA™ certification — depending on the severity of the breach, any mitigating or aggravating circumstances, and the individual’s cooperation with the Board’s investigation.