- Seven Standards of Professional Conduct
- Standard I (A) Professionalism - Knowledge of the Law
- Standard I (B) Professionalism - Independence and Objectivity
- Standard I (C) Professionalism - Misrepresentation
- Standard I (D) Professionalism - Misconduct
- Standard II (A) - Material Non-public Information
- Standard II (B) - Market Manipulation
- Standard III (A) - Loyalty, Prudence, and Care
- Standard III (B) - Fair Dealing
- Standard III (C) - Suitability
- Standard III (D) - Performance Presentation
- Standard III (E) - Preservation of Confidentiality
- Standard IV (A) - Loyalty
- Standard IV (B) - Additional Compensation Arrangements
- Standard IV (C) - Responsibilities of Supervisors
- Standard V (A) - Diligence and Reasonable Basis
- Standard V (B) - Communication with Clients and Prospective Clients
- Standard V (C) - Record Retention
- Standard VI (A) - Disclosure of Conflicts
- Standard VI (B) - Priority of Transactions
- Standard VI (C) - Referral Fees
- Guidance for Standard VII – Responsibilities of a CFA Institute Member or CFA Candidate
Seven Standards of Professional Conduct
In this section we will study the seven standards of professional conduct in detail. The CFA members and candidates are expected to know and adhere by these standards of professional conduct.
We will take different situations involving the professional integrity of a member and demonstrate how to apply the standards in those situations. We will also demonstrate examples of behaviour that adheres to and behaviour that violates the Code and Standards.
I. Professionalism
- Knowledge of the law
- Independence & objectivity
- Misrepresentation
- Misconduct
II. Integrity of capital market
- Material nonpublic information
- Market manipulation
III. Duties to clients
- Loyalty, prudence & care
- Fair dealing
- Suitability
- Performance Presentation
- Preservation of Confidentiality
IV. Duties to employers
- Loyalty
- Additional compensation arrangement
- Responsibilities of supervisors
V. Investment analysis, recommendations & actions
- Diligence & reasonable basis
- Communication with clients & prospective clients
- Record retention
VI. Conflicts of interest
- Disclosure of conflicts
- Priority of transaction
- Referral fees
VII. Responsibilities as a CFA Institute member or CFA candidate
- Conduct as member & candidate in the CFA program
- Reference to CFA Institute, the CFA Designation & the CFA Program
Note that in our examples, we will use the term ‘members’ but we are referring to both members and candidates.
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