Standards of Professional Conduct

1. Professionalism
(a) Knowledge of the law the member must operate in complete compliance of all applicable laws as set out by
all relevant higher authorities including: government, financial institution, CFA institution.
(b) Independence and objective the member must use reasonable care and judgement to operate independently
and objectively. E.g. the member may not accept gifts from clients.
(c) Misrepresentations the member must not knowingly make any misrepresentations with respect to
investment analysis, recommendations, actions, or other professional activities.
(d) Misconduct the member must not engage in activity that will compromise their integrity, professional
reputation, or competence.

2. Integrity of Capital Markets

(a) Material non-public information the member must not disclose material non-public information.
Is the information material?
Is the information available to the public?
(b) Market manipulation the member must not engage in any form of market manipulation by distorting prices
or market volumes.

3. Duty to Clients
(a) Loyalty, Prudence, and Care the client must provide prudent solutions to the client.
(b) Fair Dealing the member must put the clients interests before his personal or employers interests.
(c) Suitability the member must offer solutions after considering the clients financial position and in
consideration of the clients portfolio, investment experience, risk level, and mandates and requirements.
(d) Performance presentation the member must take reasonable care to present fair and accurate investment
performance information to the client.
(e) Preservation of confidentiality members must not disclose confidential information pertaining to the client
unless approved, required by the law, or concerns illegal activities.

4. Duty to employer
(a) Loyalty the member must not withhold skills and expertise from employer or harm in any way otherwise.
(b) Additional compensation package members may not accept gifts, benefits, compensation or packages that
may put them in a conflict of interest with their employer.
(c) Responsibilities of supervisors members in supervisory roles must ensure their subordinates operate in
compliance with the codes of ethics and standards of conducts of all relevant higher authorities.

5. Investment analysis, recommendations, and actions

(a) Diligence and reasonable basis exercise diligence, independence, and thoroughness when analyzing
investment, making investment recommendations, and doing investment actions.
(b) Communication with clients and prospective clients communicate with clients all material information
pertaining to their portfolio.
(c) Record retention members must maintain records to support their investment analysis, recommendations,
and actions.

6. Conflict of interest
(a) Disclose in plain language any conflict of interest.
(b) Priority of transaction for clients and employers over and above the member.
(c) Disclose referral fees to employers, clients, and prospective clients received by members from others in any
form of compensation for the recommendation of product or services.

7. Responsibilities as charter holder

(a) Conduct as participants in CFA Institute programs must not conduct themselves in any way which
compromises the reputation of the institute.
 (b) Reference to CFA membership members must not misrepresent or exaggerate the implications of being a
CFA member.

Always adhere to the strictest rules (law vs CFA institute standards)

Inaction against unethical practises may be construed as knowing participation
Members should encourage their firms to develop and adopt a code of ethics
Members must be able to distinguish between gifts and bribes.