Lesson 3 of 5 · All lessons in this module
  1. Why ethics matters in investing
  2. Who maintains and enforces the Code and Standards
  3. The six components of the Code of EthicsVideo lesson
  4. Standards I–III: professionalism, markets, clients
  5. Standards IV–VII: employers, analysis, conflicts, CFA

Lesson 3 of 5 · 11 min

The six components of the Code of Ethics

The Code of Ethics is six high-level aspirations, and the seven Standards of Professional Conduct turn them into concrete rules that members and candidates must follow.

In short

  • The Code is aspirational: broad principles. The Standards are practical: specific required conduct. Read them together as one interwoven set.
  • Six Code components: act with integrity, competence, diligence and respect; put the profession's integrity and clients' interests first; use reasonable care and independent judgment; practise and encourage professional, ethical conduct; promote the integrity and viability of global capital markets for the ultimate benefit of society; maintain and improve competence, own and others'.
  • Seven Standards: I Professionalism, II Integrity of Capital Markets, III Duties to Clients, IV Duties to Employers, V Investment Analysis, Recommendations and Actions, VI Conflicts of Interest, VII Responsibilities as a CFA Institute Member or CFA Candidate.
  • Members and candidates have a personal responsibility to uphold the Code and Standards and are encouraged to tell their employer about it.

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