Standard III – Duties to Clients and Prospective Clients
Standard III(A) – Loyalty, Prudence, and Care Members and Candidates owe their clients a responsibility of loyalty, and they must act with reasonable caution and sound judgment. Members and Candidates must work in the best interests of their clients, putting…
Standard II(B) – Market Manipulation
CFA Institute members and candidates are prohibited from engaging in tactics that artificially increase trading volume to deceive market participants under the Integrity of Capital Markets, Market Manipulation policy. Application 1: Manipulation of Model Inputs Andy Knoxville is the head…
Standard II(A) – Material Non-Public Information
CFA Institute members and candidates should not act on material nonpublic information in their possession or cause others to act on it. If the publication of information will affect the price of a security or if reasonable investors would wish…
Standard I(D) – Misconduct
Members and Candidates shall not engage in any professional activity that involves dishonesty, fraud, or deception or act in a way that harms their professional reputation, integrity, or competence. This does not apply to legal violations stemming from acts of…
Standard I(C) – Misrepresentation
Members and Candidates must not make any false statements about investment analysis, recommendations, actions, or other professional activity with the intent to deceive. Members and candidates are prohibited from making any claims that promise or guarantee a certain rate of…
Standard I(B) – Independence and Objectivity
Members and Candidates must exercise reasonable caution and discretion in their professional actions to establish and preserve independence and objectivity. They are prohibited from offering, soliciting, or accepting any gift, benefit, remuneration, or other inducement that could reasonably be considered to…
Code and Standards: Application
At the end of this reading, you should be able to: 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…
Standard III (E) – Preservation of Confidentiality
Standard III (E) – Preservation of Confidentiality Members and Candidates must keep information about current, former, and prospective clients confidential unless: The information concerns illegal activities on the part of the client or prospective client; Disclosure is required by law;…
Standard VI (C) – Referral Fees
Standard VI (C) – Referral Fees Members and Candidates must disclose to their employer, clients, and prospective clients, as appropriate, any compensation, consideration, or benefit received from or paid to others for the recommendation of products or services. Guidance Members…
Standard VI (B) – Priority of Transactions
Standard VI (B) – Priority of Transactions Investment transactions for clients and employers must have priority over investment transactions in which a Member or Candidate is the beneficial owner. Guidance Client transactions must always take priority over transactions made on…
