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CFA Institute Code of Ethics
• 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 your 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 yourselves and the
profession.
• Promote the integrity and viability of the global capital markets for the ultimate benefit of society.
• Maintain and improve professional competence and strive to maintain and improve the competence of other investment
professionals.
CFA Institute Standards of Professional Conduct
I. PROFESSIONALISM
A. Knowledge of the Law
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
your professional activities.
In a conflict, comply with the more strict law, rule, or regulation.
Don’t knowingly participate or assist in and dissociate from any violation of such laws, rules, or regulations.
B. Independence and Objectivity
Use reasonable care and judgment to achieve and maintain independence and objectivity in your professional activities.
Don’t offer, solicit, or accept any gift, benefit, compensation, or consideration that reasonably could be expected to compromise
your or another’s independence and objectivity.
C. Misrepresentation
Don’t knowingly misrepresent investment analysis, recommendations, actions, or other professional activities.
D. Misconduct
Don’t engage in any professional conduct involving dishonesty, fraud, or deceit or commit any act that reflects adversely on your
professional reputation, integrity, or competence.
E. Competence
Members and Candidates must act with and maintain the competence necessary to fulfill their professional responsibilities.
II. INTEGRITY OF CAPITAL MARKETS
A. Material Nonpublic Information
Don’t act or cause others to act on material nonpublic information that could affect the value of an investment.
B. Market Manipulation
Don’t engage in practices that distort prices or artificially inflate trading volume with the intent to mislead market participants.
This document was created by Dr. Andrew Stotz, CFA of A. Stotz Academy. CFA Institute does not endorse, promote, review, or warrant the accuracy of the
products or services offered by A. Stotz Academy. The CFA Institute Logo, CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
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III. DUTIES TO CLIENTS
A. Loyalty, Prudence, and Care
You have a duty of loyalty to clients and act with reasonable care and exercise prudent judgment.
Act for the benefit of your clients and place your clients’ interests before your employer’s or your own interests.
B. Fair Dealing
Deal fairly and objectively with all clients when providing investment analysis, making investment recommendations, taking
investment action, or engaging in other professional activities.
C. Suitability
1. When you are in an advisory relationship with a client
a. Make a reasonable inquiry into a client’s or prospective client’s investment experience, risk and return objectives, and
financial constraints prior to making any investment recommendation or taking investment action and reassess and update this
information regularly.
b. Determine that an investment suits the client’s financial situation and is consistent with the client’s written objectives,
mandates, and constraints before making an investment recommendation or taking investment action.
c. Judge the suitability of investments in the context of the client’s total portfolio.
2. When you are responsible for managing a portfolio to a specific mandate, strategy, or style, make only investment
recommendations or take only investment actions consistent with the stated objectives and constraints of the portfolio.
D. Performance Presentation
When communicating investment performance, make reasonable efforts to ensure it is fair, accurate, and complete.
E. Preservation of Confidentiality
Keep information about current, former, and prospective clients confidential unless:
1. The information concerns illegal activities on the part of the client or prospective client,
2. Disclosure is required by law, or
3. The client or prospective client permits disclosure of the information.
IV. DUTIES TO EMPLOYERS
A. Loyalty
In matters related to your employment, act for your employer's benefit and do not deprive them of the advantage of your skills
and abilities, divulge confidential information, or otherwise cause harm to your employer.
B. Additional Compensation Arrangements
Don’t accept gifts, benefits, compensation, or consideration that competes with or might reasonably be expected to create a
conflict of interest with your employer’s interest unless you obtain written consent from all parties involved.
C. Responsibilities of Supervisors
Make reasonable efforts to ensure that anyone subject to your supervision or authority complies with applicable laws, rules,
regulations, and the Code and Standards.
This document was created by Dr. Andrew Stotz, CFA of A. Stotz Academy. CFA Institute does not endorse, promote, review, or warrant the accuracy of the
products or services offered by A. Stotz Academy. The CFA Institute Logo, CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
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V. INVESTMENT ANALYSIS, RECOMMENDATIONS, AND ACTIONS
A. Diligence and Reasonable Basis
1. Exercise diligence, independence, and thoroughness in analyzing investments, making investment recommendations, and
taking investment actions.
2. Have a reasonable and adequate basis for any investment analysis, recommendation, or action, supported by appropriate
research and investigation.
B. Communication with Clients and Prospective Clients
1. Disclose to clients and prospective clients the nature of the services provided, along with information about the costs to the
client associated with those services.
2. Disclose to clients and prospective clients the basic format and general principles of the investment processes you use to
analyze investments, select securities, and construct portfolios and promptly disclose any changes that might materially affect
those processes.
3. Disclose to clients and prospective clients significant limitations and risks associated with the investment process.
4. Use reasonable judgment in identifying which factors are important to your investment analyses, recommendations, or
actions, and include those factors in communications with clients and prospective clients.
5. Distinguish between fact and opinion in the presentation of investment analysis and recommendations.
C. Record Retention
Develop and maintain appropriate records to support your investment analyses, recommendations, actions, and other
investment-related communications with clients and prospective clients.
VI. CONFLICTS OF INTEREST
A. Avoid or Disclose Conflicts
Avoid or make full and fair disclosure of all matters that could reasonably be expected to impair independence and objectivity
and interfere with duties to their clients, prospective clients, and employer. Must ensure that such disclosures are prominent,
are delivered in plain language, and communicate the relevant information effectively.
B. Priority of Transactions
Investment transactions for clients and employers have priority over transactions in which you are the beneficial owner.
C. Referral Fees
Disclose to your 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.
VII. RESPONSIBILITIES AS A CFA INSTITUTE MEMBER OR CFA CANDIDATE
A. Conduct as Participants in CFA Institute Programs
Don’t engage in conduct that compromises the reputation or integrity of CFA Institute, the CFA designation, or the integrity,
validity, or security of CFA Institute programs.
B. Reference to CFA Institute, the CFA Designation, and the CFA Program
When referring to CFA Institute, CFA Institute membership, the CFA designation, or candidacy in the CFA Program, don’t
misrepresent or exaggerate the meaning or implications of membership in CFA Institute, holding the CFA designation, or
candidacy in the CFA Program.
This document was created by Dr. Andrew Stotz, CFA of A. Stotz Academy. CFA Institute does not endorse, promote, review, or warrant the accuracy of the
products or services offered by A. Stotz Academy. The CFA Institute Logo, CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.