Ethics on financial/investment field (2) - CFA Institute Standards of Professional Conduct

Both CFA Institute and CAIA are using CFA Institute Standards of Professional Conduct.

Let’s explore what is inside.

The portion more related to clients/customers are Professionalism; Duties to clients;
Investment analysis, recommendations and actions; Conflicts of interest.

For details, refer to the following files:
Code of Ethics and Standards of Professional Conduct

Standard of Practice Handbook
(we can find many Guidances, Recommended Procedures, Applications etc.)

CFA Institute Standards of Professional Conduct:
1. Professionalism
a. knowledge of the law
b. independence and objectivity
c. misrepresentation
d. misconduct

2. Integrity of capital markets
a. material nonpublic information
b. market manipulation

3. Duties to clients
a. loyalty, prudence and care
b. fair dealing
c. suitability
d. performance presentation
e. preservation of confidentiality

4. Duties to employers
a. loyalty
b. additional compensation arrangement
c. responsibilities of supervisors

5. Investment analysis, recommendations and actions
a. diligence and reasonable basis
b. communication with clients and prospecting clients
c. record retention

6. Conflicts of interest
a. disclosure of conflicts
b. priority of transactions
c. referral fees

7. Responsibilities as a CFA Institute member or CFA candidate
a. conduct as members and candidates in the CFA program
b. reference to CFA Institute, the CFA designation and the CFA program