Ethical and Professional

Standards
Code of Ethics and Standards
of Professional Conduct

Code and Standards

CFA Institute Professional

Conduct Program
Disciplinary Review Committee of CFA Institute
Board of Governors has responsibility for the
Professional Conduct Program and for enforcement
of the Code and Standards
CFA Institute, through Professional Conduct staff,
conducts inquiries related to professional
conduct
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 Code and Standards

CFA Institute Professional

Conduct Program
Inquiry can be prompted by:
 Self-disclosure by members or candidates

 Written complaints about a member or

candidate’s professional conduct
 Evidence of misconduct by a member or
candidate
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Code and Standards

CFA Institute Professional

Conduct Program
Inquiry can be prompted by:
 Report by a CFA exam proctor
 Analysis of exam scores and materials,
monitoring of websites and social media

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 Code and Standards

CFA Institute Professional

Conduct Program
CFA Institute Professional Conduct staff may decide:
1. That no disciplinary sanctions are appropriate
2. To issue a cautionary letter
3. To discipline the member or candidate
Sanctions may include condemnation by member’s
peers or suspension of candidate’s participation in
the CFA Program
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Code and Standards

Code of Ethics
Act with integrity, competence, diligence,
respect, and in an ethical manner—public,
clients, prospects, employers, employees,
colleagues. Act in an ethical manner.
Integrity of investment profession and client
interests above personal interests. Integrity is
paramount and clients always come first.

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 Code and Standards

Code of Ethics
Reasonable care, independent professional
judgment when conducting analysis, making
recommendations, taking investment actions, and
in other professional activities. Use reasonable
care; be independent.
Practice, encourage others…in a professional,
ethical manner…reflect credit on themselves and
profession. Be a credit to the investment
profession.
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Code and Standards

Code of Ethics
Promote integrity of capital markets for ultimate
benefit of society. Uphold capital market rules
and regulations.
Maintain, improve professional competence,
and strive to do the same for other investment
professionals. Be competent.

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 Code and Standards

Standards of Professional Conduct

I. Professionalism
A. Knowledge of the Law
B. Independence and Objectivity
C. Misrepresentation
D. Misconduct

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Code and Standards

Standards of Professional Conduct

II. Integrity of Capital Markets
A. Material Nonpublic Information
B. Market Manipulation

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 Code and Standards

Standards of Professional Conduct

III. Duties to Clients
A. Loyalty, Prudence, and Care
B. Fair Dealing
C. Suitability
D. Performance Presentation
E. Preservation of Confidentiality

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Code and Standards

Standards of Professional Conduct

IV. Duties to Employers
A. Loyalty
B. Additional Compensation Arrangements
C. Responsibilities of Supervisors

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 Code and Standards

Standards of Professional Conduct

V. Investment Analysis,
Recommendations, and Actions
A. Diligence and Reasonable Basis
B. Communication with Clients and
Prospective Clients
C. Record Retention

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Code and Standards

Standards of Professional Conduct

VI. Conflicts of Interest
A. Disclosure of Conflicts
B. Priority of Transactions
C. Referral Fees

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 Code and Standards

Standards of Professional Conduct

VII. Responsibilities as a CFA Institute
Member or CFA Candidate
A. Conduct as Participants in CFA Institute
Programs
B. Reference to CFA Institute, the CFA
Designation, and the CFA Program

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