Lesson 5 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 5 of 5 · 14 min

Standards IV–VII: employers, analysis, conflicts, CFA

Standards IV to VII cover loyalty to employers and supervision, how to analyse and communicate recommendations, how to handle conflicts of interest, and how to behave as a member or candidate of CFA Institute.

In short

  • IV Duties to Employers: loyalty to the employer; no competing additional compensation without written consent from all parties; supervisors must make reasonable efforts to ensure compliance by those they supervise.
  • V Investment Analysis, Recommendations, and Actions: diligence and a reasonable basis; communication (five disclosure duties, including services and costs); record retention.
  • VI Conflicts of Interest: avoid or disclose conflicts (prominently, in plain language); client and employer trades have priority over your own; disclose referral fees received or paid.
  • VII: do not compromise the integrity or security of CFA Institute programs; do not misrepresent or exaggerate what membership, the designation or candidacy means.
  • The 2023 revisions added I(E) Competence, added services-and-costs disclosure to V(B), and renamed VI(A) to Avoid or Disclose Conflicts.

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