Guidance for Standards I–VII

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.

1. 1. Standard I: ProfessionalismStandard I asks five things of every member and candidate: know and follow the stricter rule, stay independent, never mislead, never act dishonestly, and be competent for the job you actually do.Video · 6 minFree16 min
2. 2. Standard I cases: knowledge of the law and dissociationUnder I(A), first find the law that really governs your conduct, then follow whichever of that law and the Code is stricter, and step away from any violation you know or should know about.14 min
3. 3. Standard I cases: pressure on analysts and performance staffIndependence fails when someone with a stake can move your conclusion. Keep the opinion you reached from the facts, state it plainly, and send the pressure to compliance.15 min
4. 4. Standard I cases: gifts, travel, manager selection and paid researchJudge every benefit by its size, its timing and its purpose: modest and business-related is fine, but anything that rewards past business or buys future business compromises independence.14 min
5. 5. Standard I cases: misrepresenting services, products and resultsA statement misrepresents when it leaves a reasonable client with a false picture, whether through a false fact, a true number picked selectively, an omitted risk or an error left uncorrected.15 min
6. 6. Standard I cases: plagiarism, third-party material and online contentUse other people's work freely but name it: credit belongs to whoever produced the idea, the model or the data, and whatever you pass on becomes your responsibility.14 min
7. 7. Standard I cases: misconduct and competenceAsk two things: did the conduct involve dishonesty or damage trust in your professional life, and did you have the knowledge and skill the role required before you acted? A bad result alone answers neither.13 min
8. 8. Standard II: Integrity of Capital MarketsMarkets only work if no one trades on secrets or fakes prices: never act on material nonpublic information, and never distort prices or volume to mislead.Video · 6 minFree15 min
9. 9. Standard II(A) cases: material, nonpublic or mosaic?Run every II(A) vignette through two gates, material and then nonpublic, and ask where each piece came from: analysis built from public and immaterial pieces is fine, one material nonpublic piece is not.15 min
10. 10. Standard II(A) cases: tipping, experts and firm controlsOnce you hold material nonpublic information, do not trade, do not tip, do not change a recommendation and send it to compliance; the cases test the many disguises acting and tipping can wear.16 min
11. 11. Standard II(B) cases: rumours, trades and intentManipulation is a false picture of price or volume created on purpose: ask whether the information was false or misleading, or the trades were designed to mislead, and whether the member knew or should have known the effect.15 min
12. 12. Standard II cases: extra 2026 examples and proceduresThe 2026 reading adds four examples and several procedures to Standard II: weighing an executive's remark, passive market making, disclosed liquidity programmes, manipulated model inputs and rumours that bring no profit.12 min
13. 13. Standard III(A)–(B): Loyalty, Prudence, Care and Fair DealingClients come first, ahead of the employer and yourself, and every client gets a fair (not identical) chance at your recommendations and trades.Video · 6 minFree15 min
14. 14. Standard III(A) cases: client identity, loyalty and brokerageName the real client, check what the documents allow, then ask who benefits: if the manager, the firm or a favoured party gains at the client's expense, III(A) is breached.16 min
15. 15. Standard III(B) cases: dissemination, allocation and priorityFair means no client is disadvantaged by timing, priority or price: let everyone hear a recommendation together, and allocate trades by a rule fixed before you see the fills.16 min
16. 16. Standard III(C)–(E): Suitability, Performance Presentation and ConfidentialityKnow the client before you advise, present performance fairly and completely, and keep what clients tell you to yourself.Video · 6 min15 min
17. 17. Standard III(C) cases: IPS, total portfolio and mandatesSuitability is judged against the client's written objectives and constraints, across the whole portfolio, and only by those in an advisory relationship; a mandate manager answers to the mandate.16 min
18. 18. Standard III(D) cases: fair, accurate and complete performancePerformance figures must let a reader judge what was achieved, by whom, over which period and by what method: leave out, relabel or reshape nothing that changes the picture.15 min
19. 19. Standard III(E) cases: exceptions, channels and firm limitsClient information stays private, even after the relationship ends, unless the client permits disclosure, the law requires it or the client's illegal activity is involved; when in doubt, ask compliance or counsel first.14 min
20. 20. Standard IV: Duties to EmployersBe loyal to your employer while you work there, get written consent before taking outside pay that could conflict, and if you supervise people, make reasonable efforts to prevent and detect their violations.Video · 6 minFree14 min
21. 21. Standard IV(A) cases: loyalty, outside work and leavingWhile a firm pays you, you act for its benefit: prepare and plan freely, but never compete, solicit, take records or leak its views, and let clients and market integrity outrank the firm only when protecting them is the clear aim.16 min
22. 22. Standard IV(B) and IV(C) cases: outside pay and supervisionOutside pay that could sway you needs your employer's written consent before you take it; supervisors must build systems that prevent and detect violations, make sure they are followed, and act on what they learn.15 min
23. 23. Standard V: Investment Analysis, Recommendations, and ActionsDo the homework before you recommend, tell clients clearly what you do, what it costs and what could go wrong, and keep the records that prove it.Video · 6 minFree15 min
24. 24. Standard V(A) cases: reasonable basis and outside researchA recommendation stands on the work done before it, not on the result after it: ask what the basis was, whether it was still current when the client acted, and whose research you leaned on.15 min
25. 25. Standard V(A) cases: models, advisers and providersModels and external managers are judged like securities: understand what they assume, test them before use, and never choose on a single feature such as fees, friendship or a demonstration.15 min
26. 26. Standard V(B) cases: services, costs and process changesTell clients what you do, what it costs and how you invest, and tell them again, promptly, whenever any of those change in a way a client could care about.16 min
27. 27. Standard V(B) cases: risks, limitations, facts and opinionsSay what could go wrong, judged on what you knew at the time, include the factors that drive the conclusion, and label every forecast, estimate and model output as opinion.15 min
28. 28. Standard V(C) cases: records and retentionIf you cannot show what you looked at and why you acted, you cannot prove you were diligent: keep the support in whatever format it arrives, and remember it belongs to the firm.13 min
29. 29. Standard VI: Conflicts of InterestAvoid conflicts where you can and disclose the rest clearly, trade for clients and the employer before yourself, and tell people when someone is paying for a referral.Video · 6 minFree14 min
30. 30. Standard VI(A) cases: avoiding and disclosing conflictsAsk whether something could reasonably cloud your objectivity or look biased; avoid it where you reasonably can, and otherwise disclose it prominently and in plain language to those who must judge it: clients, prospects and your employer.14 min
31. 31. Standard VI(B) and VI(C) cases: who trades first and who gets paidClients first, employer second, yourself last; personal trades must neither disadvantage clients nor use their information, and any payment or benefit for a recommendation, in either direction, must be disclosed before the client signs.15 min
32. 32. Standard VII: Responsibilities as a CFA Institute Member or CFA CandidateProtect the integrity of CFA Institute programmes, keep exam content confidential, and describe the CFA designation and your candidacy accurately, without exaggeration.Video · 5 minFree11 min
33. 33. Standard VII(A) cases: exams, confidentiality and volunteeringVII(A) asks one thing of exam takers and volunteers: do nothing that weakens the exam, and say nothing about its content, tested or not, until CFA Institute releases it; opinions about CFA Institute remain free.16 min
34. 34. Standard VII(B) cases: using the designation, membership and candidacyVII(B) lets you state facts and honestly labelled opinions about CFA Institute, the charter and the Program, and forbids promises: no partial designation, no expected completion date, and no claim that the charter or fast passing produces better results.15 min