CFA Code of Ethics and Standards of Professional Conduct

The CFA Code of Ethics and Standards of Professional Conduct is a critical component of the CFA Program curriculum. It sets forth the ethical principles and standards that guide the professional conduct of CFA charterholders and candidates.

Why is it important?
The Code and Standards help maintain the integrity and credibility of the investment profession. By adhering to these principles, investment professionals demonstrate their commitment to acting ethically and placing the interests of clients above their own.

What is it?
The Code of Ethics outlines the fundamental ethical principles that CFA Institute members and candidates must abide by, such as acting with integrity, competence, diligence, and respect. The Standards of Professional Conduct provide specific guidance on how to apply these principles in practice, covering areas such as professionalism, integrity of capital markets, duties to clients and employers, and conflicts of interest.

How it works:
Investment professionals who are CFA charterholders or candidates must follow the Code and Standards in their professional activities. This includes making ethical decisions, disclosing conflicts of interest, maintaining independence and objectivity, and protecting the confidentiality of client information.

How to answer questions on Code of Ethics and Standards of Professional Conduct in an exam:
1. Read the question carefully and identify the ethical issue or standard being addressed.
2. Consider the relevant principles and standards from the Code and Standards.
3. Analyze the situation and determine the most appropriate course of action that aligns with the Code and Standards.
4. Select the answer choice that best reflects the ethical decision or action.

Exam Tips: Answering Questions on Code of Ethics and Standards of Professional Conduct
- Focus on the key ethical principles and standards relevant to the question.
- Apply the Code and Standards to the specific situation presented in the question.
- Choose the answer that best demonstrates adherence to the Code and Standards, even if it may not be the most favorable outcome for the investment professional.
- Be aware of common pitfalls, such as prioritizing personal gain over client interests or failing to disclose conflicts of interest.
- Practice applying the Code and Standards to various scenarios to develop your ethical decision-making skills.