Application of the Code and Standards: Level III

Understanding and applying the CFA Institute's Code of Ethics and Standards of Professional Conduct is crucial for all CFA charterholders and candidates. At Level III, the focus is on identifying and addressing complex ethical situations that may arise in the investment profession.

The Code of Ethics and Standards of Professional Conduct set forth the ethical principles and professional standards that guide the behavior of CFA Institute members and candidates. These include:
- Acting with integrity, competence, diligence, and respect
- Placing the integrity of the profession and the interests of clients above personal interests
- Maintaining and improving professional competence
- Promoting the integrity and viability of the global capital markets for the ultimate benefit of society

At Level III, candidates are expected to analyze and evaluate ethical dilemmas in the context of the investment profession. This involves:
1. Identifying the relevant ethical principles and standards
2. Considering the interests of all stakeholders
3. Evaluating alternative courses of action
4. Choosing the most appropriate course of action that adheres to the Code and Standards

Exam Tips: Answering Questions on Application of the Code and Standards: Level III
1. Read the question carefully and identify the key ethical issues at stake
2. Consider the perspectives of all stakeholders involved
3. Refer to the specific principles and standards relevant to the situation
4. Evaluate the potential consequences of different actions
5. Choose the course of action that best aligns with the Code and Standards, and provides the most benefit or least harm to stakeholders
6. Justify your answer by citing the relevant principles and standards

By thoroughly understanding and applying the Code of Ethics and Standards of Professional Conduct, investment professionals can navigate complex ethical situations, maintain the integrity of the profession, and best serve the interests of their clients and society as a whole.