Code of Ethics and Standards

of Professional Conduct
Ethics:FRA:
SS SS
1,
1
9,Reading
Reading 30

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Structure of the CFA Institute Professional Conduct

Program (PCP)

Board of Governors

Professional Conduct Program (a

Designated Officer usually proposes
the sanction)

Disciplinary Review Committee

(hearing panel)

Both are responsible for the enforcement of the Code of Ethics and
Standards of Professional Conduct through the Rules of Procedure!

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Inquiries that Initiate the PCP Enforcement Process

Self-disclosure: all members and candidates must
disclose all matters that question their professional
conduct on an annual basis.
Written complaints: any complaints by third parties
received by the Professional Conduct staff.

Public awareness: Questionable conduct may be

displayed through the media or another public source.
Exam violation reports: Examination proctors submit
reports for candidates suspected of unethical behavior
during the CFA exam.
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Enforcement Process for the Code

and Standards
Inquiry Initiated

PCP formally
conducts
Investigation

Designated Officer
concludes inquiry

The conclusion can result in a cautionary letter or no sanction being issued.

Only if the Designated Officer finds that a violation of the Code and Standards
occurred, then the process continues as follows below:
Designated
Officer proposes
sanction

Candidate chooses
to accept or reject
sanction

Hearing panel
determines if
violation occurred
occurred

If the candidate rejects the officers proposed sanction, then the hearing
panel must make the final decision!

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The Code of Ethics

Code of Ethics (six components that CFA members and candidates must know
and follow):
Act with integrity, competence, diligence, and respect with the public, clients,
employers, employees, and others.
Place the integrity of the investment profession and interests of clients above
their own personal interests.
Use reasonable care and exercise independent professional judgment when
conducting investment analysis, making recommendations, taking actions,
and engaging in other activities.
Practice and encourage others to practice in a professional and ethical
manner.
Promote the integrity of and uphold the rules governing capital markets.
Maintain and improve their professional competence and strive for the
competence of other investment professionals.

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Standards of Professional Conduct

The Standards of Professional Conduct can be divided into seven broad
provisions as follows:
Professionalism
Integrity of Capital Markets
Duties to Clients
Duties to Employers
Investment Analysis, Recommendations, and Actions
Conflicts of Interest
Responsibilities as a CFA Institute Member or CFA Candidate
Note: Each provision will be discussed in greater detail, including its application(s)
and sub-sections

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