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 and promote these values to other stakeholders in the investment profession.

Code of Ethics

Members of CFA Institute (including CFA charter holders) and candidates for the CFA designation (“Members and Candidates”) must:

• Act with integrity, competence, diligence, and respect, and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and other participants in the global capital markets.
• Place the integrity of the investment profession and the interests of clients above their own personal interests.
• Use reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities.
• Practice and encourage others to practice in a professional and ethical manner that will reflect credit on themselves and the profession.
• Promote the integrity and viability of the global capital markets for the ultimate benefit of society.
• Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.

THE STANDARDS OF PROFESSIONAL CONDUCT

1.  Professionalism
2. Integrity of Capital Markets
3. Duties to Clients
4. Duties to Employers
5. Investment Analysis, Recommendations, and Actions
6. Conflicts of Interest
7. Responsibilities as a CFA Institute Member or CFA Candidate

Reading 45: Code OF Ethics AND Standards of Professional Conduct

LOS 45 (a) Describe the six components of the Code of Ethics and the seven Standards of Professional Conduct.