Ethical and Professional Standards
Ethical and Professional Standards in short lessons: why trust matters, the Code and Standards, the guidance for every Standard, GIPS, and how to work through an ethics case.
How this topic is tested, its exam weight and study tips: Ethical and Professional Standards exam guide.
FlashcardsWhy trust is the product the investment profession sells: what ethics is, how codes and standards define a profession, why investment management needs especially high standards, what pushes good people into bad decisions, how ethics differs from law, and a four-phase framework for deciding what to do.
- What ethics is: principles, codes and standards12 min
- What makes a profession, and how it earns trust13 min
- Professionalism and trust in investment management13 min
- Why good people slip: challenges to ethical behaviour12 min
- Ethical standards versus legal standards11 min
- A framework for ethical decision makingVideo · 5 min14 min
Why ethics holds the investment industry together, how CFA Institute enforces its Code and Standards, and the map you need for every ethics question: the six components of the Code of Ethics and the seven Standards of Professional Conduct with all their sub-sections.
The working detail behind each of the seven Standards of Professional Conduct: what every sub-standard requires, how it is applied to real situations, where the line between allowed and not allowed sits, and which procedures prevent violations. This is the most heavily tested part of Ethics.
- Standard I: ProfessionalismVideo · 6 min16 min
- Standard I cases: knowledge of the law and dissociation14 min
- Standard I cases: pressure on analysts and performance staff15 min
- Standard I cases: gifts, travel, manager selection and paid research14 min
- Standard I cases: misrepresenting services, products and results15 min
- Standard I cases: plagiarism, third-party material and online content14 min
- Standard I cases: misconduct and competence13 min
- Standard II: Integrity of Capital MarketsVideo · 6 min15 min
- Standard II(A) cases: material, nonpublic or mosaic?15 min
- Standard II(A) cases: tipping, experts and firm controls16 min
- Standard II(B) cases: rumours, trades and intent15 min
- Standard II cases: extra 2026 examples and procedures12 min
- Standard III(A)–(B): Loyalty, Prudence, Care and Fair DealingVideo · 6 min15 min
- Standard III(A) cases: client identity, loyalty and brokerage16 min
- Standard III(B) cases: dissemination, allocation and priority16 min
- Standard III(C)–(E): Suitability, Performance Presentation and ConfidentialityVideo · 6 min15 min
- Standard III(C) cases: IPS, total portfolio and mandates16 min
- Standard III(D) cases: fair, accurate and complete performance15 min
- Standard III(E) cases: exceptions, channels and firm limits14 min
- Standard IV: Duties to EmployersVideo · 6 min14 min
- Standard IV(A) cases: loyalty, outside work and leaving16 min
- Standard IV(B) and IV(C) cases: outside pay and supervision15 min
- Standard V: Investment Analysis, Recommendations, and ActionsVideo · 6 min15 min
- Standard V(A) cases: reasonable basis and outside research15 min
- Standard V(A) cases: models, advisers and providers15 min
- Standard V(B) cases: services, costs and process changes16 min
- Standard V(B) cases: risks, limitations, facts and opinions15 min
- Standard V(C) cases: records and retention13 min
- Standard VI: Conflicts of InterestVideo · 6 min14 min
- Standard VI(A) cases: avoiding and disclosing conflicts14 min
- Standard VI(B) and VI(C) cases: who trades first and who gets paid15 min
- Standard VII: Responsibilities as a CFA Institute Member or CFA CandidateVideo · 5 min11 min
- Standard VII(A) cases: exams, confidentiality and volunteering16 min
- Standard VII(B) cases: using the designation, membership and candidacy15 min
An orientation to the Global Investment Performance Standards: why they exist, who may claim compliance and who gains from it, the key concepts behind them, how composites stop cherry-picking, how the firm and discretion are defined, and what independent verification does and does not prove.
Applying the Code and Standards to realistic situations: a method for reading any ethics vignette, then case-based practice on every standard, from knowledge of the law and misrepresentation to front-running, suitability, supervision, record keeping and use of the CFA designation.
- How to work through an ethics caseVideo · 6 min12 min
- Professionalism: law, independence, honesty and competence15 min
- Markets and conflicts: inside information, manipulation, front-running and fees15 min
- Duties to clients: loyalty, fair dealing, suitability, performance and confidentiality15 min
- Duties to employers: loyalty, outside pay and supervision13 min
- Research, communication, records and the CFA designation13 min