Learning Sessions – Ethical and Professional Standards

Learning Sessions – Ethical and Professional Standards

Study Session 1

Reading 1 (56 in 2022) – Ethics and Trust in the Investment Profession

Read our in-depth summary of Ethics and Trust in the Investment Profession

– LOS 1a: explain ethics
– LOS 1b: describe the role of a code of ethics in defining a profession
– LOS 1c: describe professions and how they establish trust;
– LOS 1d: describe the need for high ethical standards in the investment industry
– LOS 1e: explain professionalism in investment management;
– LOS 1f: identify challenges to ethical behavior
– LOS 1g: distinguish between ethical and legal standards
– LOS 1h: describe and apply a framework for ethical decision-making

Reading 2 (57 in 2022) – Code of Ethics and Standards of Professional Conduct

Read our in-depth summary of the Code of Ethics and Standards of Professional Conduct

– LOS 2a: describe the structure of the CFA Institute Professional Conduct Program and the process for the enforcement of the Code and Standards
– LOS 2b: state the six components of the Code of Ethics and the seven Standards of Professional Conduct
– LOS 2c: explain the ethical responsibilities required by the Code and Standards, including the sub-sections of each Standard

Reading 3 (58 in 2022) – Guidance for Standards I-VII

Read our summary of Guidance for Standards I-VII

– LOS 3a: demonstrate the application of the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity
– LOS 3b: distinguish between conduct that conforms to the Code and Standards and Conduct that violates the Code and Standards
– LOS 3c: recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct

Reading 4 (59 in 2022) – Introduction to
the Global Investment Performance Standards (GIPS)

Read our summary of introduction to the GIPS Standards

-LOS 59a: explain why the GIPS standards were created, what parties the GIPS standards apply to, and who is benefitted by the standards;

-LOS 59b: describe the key concepts of the GIPS standards for firms;

– LOS 59c: explain the construction and purpose of composites in performance reporting

-LOS 59d: describe the fundamentals of compliance, including the recommendations of the GIPS Standards with respect to the definition of the firm and the firm’s definition of discretion.

-LOS 59e: describe the concept of independent verification.

Reading 5 – The GIPS Standards

Read our in-depth summary of the GIPS Standards

– LOS 5a: describe the key features of the GIPS standards and the fundamentals of compliance
– LOS 5b: describe the scope of the GIPS standards with respect to an investment firm’s definition and historical performance record
– LOS 5c: explain how the GIPS standards are implemented in countries with existing standards for performance reporting and describe the appropriate response when the GIPS standards and local regulations conflict
– LOS 5d: describe the nine major sections of the GIPS standards

NEW READING IN 2022

Reading 60- Ethics Application

Read our in-debt summary of the Ethics Application

-LOS 59a: evaluate practices, policies, and conduct relative to the CFA Institute Code of Ethics and Standards of Professional Conduct;

-LOS 60b: explain how the practices, policies, and conduct do or do not violate the CFA Institute Code of Ethics and Standards of Professional Conduct

Ethical and Professional Standards (2024)

LM 1 – Ethics and Trust in the Investment Profession

LOS a: Explain ethics
LOS b: Describe the role of a code of ethics in defining a profession
LOS c: Describe professions and how they establish trust
LOS d: Describe the need for high ethical standards in investment management
LOS e: Explain professionalism in investment management
LOS f: Identify challenges to ethical behavior
LOS g: Compare and contrast ethical standards with legal standards
LOS h: Describe a framework for ethical decision making

LM 2 – Code of Ethics and Standards of Professional Conduct

LOS a: Describe the structure of the CFA Institute Professional Conduct Program and the process for the enforcement of the Code and Standards
LOS b: Identify the six components of the Code of Ethics and the seven Standards of Professional Conduct
LOS c: Explain the ethical responsibilities required by the Code and Standards, including the sub-sections of each Standard

LM 3 – Guidance for Standards I-VII

LOS a: Demonstrate the application of the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity
LOS b: Identify conduct that conforms to the Code and Standards and code that violates the Code and Standards
LOS c: Recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct

LM 4 – Introduction to the Global Investment Performance Standards

LOS a: Explain why the GIPS standards were created, who can claim compliance, and who benefits from compliance
LOS b: Describe the key concepts of the GIPS Standards for firms
LOS c: Explain the purpose of composites in performance reporting
LOS d: Describe the fundamentals of compliance, including the recommendations of the GIPS Standards with respect to the definition of the firm and the firm’s definition of discretion
LOS e: Describe the concept of independent verification

LM 5 – Ethics Application

LOS a: Evaluate practices, policies, and conduct relative to the CFA Institute Code of Ethics and Standards of Professional Conduct
LOS b: Explain how the practices, policies, and conduct do or do not violate the CFA Institute Code of Ethics- and Standards of Professional Conduct

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