Standard II (B) – Market Manipulation
Members and Candidates must not engage in practices that distort prices or artificially inflate trading volume with the intent to mislead market participants. Guidance Members are required to comply with Standard II(B) – Market Manipulation to promote the integrity of…
Standard II (A) – Material Nonpublic Information
Members and Candidates who possess material nonpublic information that could affect the value of an investment must not act or cause others to act on the information. Guidance Trading or causing others to trade on material nonpublic information impairs market…
Standard I (D) – Misconduct
Members and Candidates must not engage in any professional conduct involving dishonesty fraud, or deceit, or commit any act that reflects adversely on their professional reputation, integrity, or competence. Guidance Standard I(D) – Misconduct addresses all conduct that reflects poorly…
Standard I (C) – Misrepresentation
Members and Candidates must not knowingly make any misrepresentations relating to investment analysis, recommendations, actions, or other professional activities. Trust is paramount in the investment profession. Misrepresentation is broadly defined as making any false statements or deliberate omission of facts….
Standard I (B) – Independence and Objectivity
Members and Candidates must use reasonable care and judgment to achieve and maintain independence and objectivity in their professional activities. Members and Candidates must not offer, solicit, or accept any gift, benefit, compensation, or consideration that reasonably could be expected…
Standard 1(A) – Knowledge of the Law
Members and Candidates must understand and comply with all applicable laws, rules, and regulations (including the CFA Institute Code of Ethics and Standards of Professional Conduct) of any government, regulatory organization, licensing agency, or professional association governing their professional activities….
The Ethical Responsibilities Required of CFA Institute Members and Candidates in the CFA Program by the Code and Standards
The framework laid out by the Codes and Standards functions as an ethical guide, intending to promote the highest ethical responsibilities and values for Members and Candidates. The Standards are complete with practical ethical examples and expectations set by the…
The Six Components of the Code of Ethics and the Seven Standards of Professional Conduct
The CFA Code of Ethics and the seven Standards of Professional Conduct serves as a broad ethical guideline for Members and Candidates of the CFA Institute. All CFA Members and candidates are expected to adhere to the Codes and Standards…
Issues Related to Balance Sheet Modifications, Earnings Normalization, and Cash Flow Statement Related Modifications on a Company’s Financial Condition
Earnings Quality and Cash Flow Analysis Earnings quality refers to the persistence and sustainability of a company’s earnings. High-quality earnings imply that a company’s accounting estimates are unbiased. Additionally, it means that the earnings are derived from sustainable rather than…
Evaluating the Effects of Change in Accounting Standards, Methods or Assumptions on the Financial Statements and Ratios
Users of financial statements must be cognizant of proposed changes in accounting standards because of the impact they have on financial statements and a firm’s valuation. We anticipate significant changes in the accounting standards over the next few years as…
