The CFA Institute's Code of Ethics and Standards of Professional Conduct form the cornerstone of ethical behavior for Chartered Financial Analysts. These guidelines ensure that CFA charterholders maintain the highest level of integrity, competence, and professionalism in their practice. The Code of Ethics mandates that members and candidates must act with integrity, competence, diligence, respect, and in an ethical manner with the public, clients, employers, and fellow members. It emphasizes the importance of placing client interests above personal interests and maintaining a high standard of professional conduct.

The Standards of Professional Conduct elaborate on the ethical principles outlined in the Code of Ethics. They are divided into seven main areas: Professionalism, Integrity of Capital Markets, Duties to Clients, Duties to Employers, Investment Analysis and Recommendations, Conflicts of Interest, and Responsibilities as a CFA Institute Member or Candidate. Each standard provides detailed guidelines to ensure ethical behavior in various aspects of professional life. For instance, under Professionalism, members must maintain and improve their professional competence, act with integrity, and uphold the reputation of the CFA designation. The Integrity of Capital Markets standard requires members to promote transparency and fairness in the markets, avoiding practices like insider trading or the dissemination of misleading information.

Duties to Clients and Employers focus on acting in the best interests of clients, maintaining confidentiality, and avoiding conflicts of interest. The Standards related to Investment Analysis and Recommendations ensure that all investment decisions are based on thorough and objective analysis, free from bias or undue influence. Conflicts of Interest standards require members to disclose any potential conflicts and take steps to mitigate them. Finally, Responsibilities as a CFA Institute Member or Candidate involve adhering to the Code and Standards, and participating in the ongoing development of ethical practices within the profession.

Overall, the CFA Code of Ethics and Standards of Professional Conduct provide a comprehensive framework that guides charterholders in making ethical decisions, fostering trust, and upholding the integrity of the financial profession.

In the CFA Level 3 curriculum, Standards I–VII form the cornerstone of Ethical and Professional Standards, guiding members and candidates in their professional conduct.

**Standard I: Professionalism** encompasses demonstrating knowledge of the Law, independence and objectivity, and avoiding misrepresentation and violations of regulations. It mandates maintaining ethical behavior and compliance with applicable laws.

**Standard II: Integrity of Capital Markets** requires ensuring fair and efficient markets by prohibiting practices like insider trading and misleading activities that could distort market integrity.

**Standard III: Duties to Clients** emphasizes putting client interests first, maintaining confidentiality, and providing suitable investment advice based on clients' objectives and circumstances.

**Standard IV: Duties to Employers** involves acting in the best interest of employers, avoiding conflicts of interest, and protecting employer information. It also includes loyalty and proper use of employer resources.

**Standard V: Investment Analysis, Recommendations, and Actions** stresses the necessity of thorough and diligent analysis, ensuring recommendations are based on adequate research and that potential conflicts are disclosed.

**Standard VI: Conflicts of Interest** focuses on identifying and managing conflicts to maintain integrity and trust. It requires full disclosure of any potential conflicts and taking appropriate steps to mitigate them.

**Standard VII: Responsibilities as a CFA Member or Candidate** underscores adherence to the CFA Institute Code of Ethics and Standards of Professional Conduct, promoting ethical behavior, continuous professional development, and upholding the reputation of the CFA designation.

Together, these standards ensure that CFA professionals maintain high ethical standards, fostering trust and integrity in the financial industry. Mastery of these guidelines is crucial for Level 3 candidates, as they prepare to manage client relationships and make impactful investment decisions ethically and responsibly.

In the CFA Level III curriculum, the Application of the Code and Standards focuses on integrating ethical principles into portfolio management and decision-making processes. At this advanced level, candidates are expected to demonstrate not only an understanding of the CFA Institute Code of Ethics and Standards of Professional Conduct but also the ability to apply these guidelines in complex, real-world scenariosLevel III emphasizes the practical application of ethical standards through case studies and situational analysis. Candidates must assess and resolve ethical dilemmas that may arise in portfolio construction, client interactions, and investment decision-making. This includes ensuring the fair treatment of clients, maintaining confidentiality, avoiding conflicts of interest, and upholding the integrity of the capital marketsA key aspect is the emphasis on the fiduciary duty that investment professionals owe to their clients. This entails placing client interests above personal or organizational gains, providing full disclosure of any potential conflicts, and ensuring that investment recommendations are based on thorough analysis and client needs. Additionally, Level III covers the importance of maintaining professional competence and diligence, continuously improving one's knowledge and skills to serve clients effectivelyAnother focus area is the ethical reporting and communication standards. Candidates must ensure that all communications, whether written or verbal, are clear, accurate, and free from material misstatements or omissions. This includes the transparent presentation of investment strategies, risks, and performance metricsFurthermore, Level III explores the regulatory environment and the role of compliance in upholding ethical standards. Candidates learn to navigate complex regulatory requirements and ensure that their professional practices align with both the CFA Institute’s standards and local regulationsOverall, the Application of the Code and Standards at Level III requires candidates to integrate ethical considerations seamlessly into their professional practice, demonstrating the ability to uphold the highest standards of integrity and professionalism in their roles as investment managers and advisers.

The Asset Manager Code of Professional Conduct is a comprehensive framework that guides asset managers in maintaining the highest ethical and professional standards in their operations. Aligned with the Chartered Financial Analyst (CFA) Level 3 curriculum's Ethical and Professional Standards, this code emphasizes integrity, transparency, and accountability. Asset managers are entrusted with clients' investments, making fiduciary responsibility paramount. The code mandates that managers act in the best interests of their clients, ensuring that all investment decisions are made with due diligence and in accordance with clients' objectives and risk tolerancesKey components of the code include the avoidance of conflicts of interest, which requires managers to disclose any potential conflicts and take steps to mitigate them. This ensures that client interests are not compromised by personal or organizational considerations. The code also underscores the importance of confidentiality, protecting sensitive client information from unauthorized disclosure. Regulatory compliance is another critical aspect, with asset managers being required to adhere to all relevant laws, regulations, and industry standards to uphold market integrity and investor trustTransparency in reporting and communication is stressed, ensuring that clients receive clear, accurate, and timely information about their investments and the manager's performance. The code encourages continuous professional development, urging asset managers to stay informed about industry trends, evolving regulations, and best practices to enhance their expertise and service qualityMoreover, the code aligns with the CFA Institute's emphasis on ethical behavior, promoting principles such as honesty, fairness, and responsibility. By adhering to the Asset Manager Code of Professional Conduct, asset managers not only fulfill their legal and contractual obligations but also build long-term relationships based on trust and reliability. This ethical foundation is essential for sustaining client confidence, fostering a positive reputation, and achieving long-term success in the competitive asset management industry. Ultimately, the code serves as a cornerstone for ethical decision-making, guiding asset managers to act with professionalism and uphold the highest standards in all facets of their practice.

The Global Investment Performance Standards (GIPS) are a set of standardized, industry-wide ethical principles that guide investment firms in calculating and presenting their investment performance to clients. Established by the CFA Institute, GIPS aim to promote transparency, consistency, and comparability in performance reporting across the global investment industry. By adhering to GIPS, firms ensure that performance results are complete, accurate, and presented in a manner that facilitates fair comparisons between different investment managersIn the context of the Chartered Financial Analyst (CFA) Level 3 curriculum, particularly within the Ethical and Professional Standards segment, GIPS play a crucial role in upholding integrity and ethical responsibility. CFA candidates are expected to understand the importance of ethical reporting and the implications of misleading performance data. GIPS compliance demonstrates a firm’s commitment to ethical practices, aligning with the CFA Institute’s emphasis on professionalism and fiduciary dutyGIPS standards cover various aspects of performance presentation, including the calculation methodologies, disclosure requirements, composite construction, and verification processes. Firms must establish composites that accurately represent the strategies they offer, ensuring that only similar investment portfolios are grouped together. Additionally, GIPS require firms to disclose relevant information that allows clients to assess the risk and return profiles of investments comprehensivelyAdhering to GIPS also involves regular third-party verification to confirm that a firm’s performance presentation meets all standard criteria. This verification process enhances credibility and builds trust with clients and stakeholders. For CFA professionals, understanding GIPS is essential not only for compliance purposes but also for fostering a culture of ethical reporting and accountability within their organizationsOverall, the Global Investment Performance Standards serve as a foundational framework that supports ethical behavior in performance reporting. By ensuring consistency and transparency, GIPS help protect investor interests, facilitate informed decision-making, and uphold the high standards of professionalism expected from CFA charterholders.