Lesson 2 of 6 · All lessons in this module
- How to work through an ethics caseVideo lesson
- Professionalism: law, independence, honesty and competence
- Markets and conflicts: inside information, manipulation, front-running and fees
- Duties to clients: loyalty, fair dealing, suitability, performance and confidentiality
- Duties to employers: loyalty, outside pay and supervision
- Research, communication, records and the CFA designation
Lesson 2 of 6 · 15 min
Professionalism: law, independence, honesty and competence
Professionalism cases ask whether the member obeyed the stricter rule, kept their judgment free from improper influence, told the truth (including by not leaving things out), acted honestly, and had the competence their role demands.
In short
- I(A) Knowledge of the Law: follow the stricter of law and Code; never knowingly participate in a violation; dissociate when you find one. Client relationships or confidentiality never justify ignoring legal duties such as anti-money-laundering checks.
- I(B) Independence and Objectivity: do not offer or accept anything that could reasonably compromise your own or another's objectivity, including political donations aimed at people who award mandates.
- I(C) Misrepresentation: no guarantees on volatile investments, no misleading omissions (e.g. a key team member leaving), and no false statements on any channel, social media included.
- I(D) Misconduct: covers dishonesty, fraud and deceit in professional life. Peaceful personal protest is generally outside it; faking trade errors to boost client returns is not.
- I(E) Competence: when your role changes, build the new skills it needs, including management and supervision skills.
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