CFA Program – Ethics & Standards

February 5, 2010
, , , , , , , , , , , , , , , , ,

The Code of Ethics and Standards of Professional Conduct are the ethical cornerstone of CFA Institute. They are essential to CFAI's mission to lead the global investment profession and pivotal to maintaining public's trust in the financial markets/institutions.


Significance from Examination point of view:
Though many candidates find this topic a bit monotonous, this is single-handedly one of the most important topics for the exam. The weightage for this topic is about 15% for the level-I exam, however considering the scenario where candidate's average score in other topics is close to the minimum passing score, the score on Ethics-related questions proves to be the key to determining whether candidate passes or fails !

Historical Background:
About 40-45 years back, the CFA exam was merely a test of one's knowledge of ethical standards, professional conduct and testing one's grasp of right and wrong in various business situations. In its present form, the exam has changed dramatically to test candidates' s competence in accounting, economics, quantitative methods, asset valuation and portfolio management.
Nonetheless, the Code and Standards are the ethical benchmark for investment professionals around the globe, regardless of job title, cultural differences, or local laws.

What is the Code of Ethics and Standards of Professional Conduct?

Code of Ethics:

  • Place the integrity of the profession and the interests of clients above your own interests
  • Act with integrity, competence, and respect
  • Improve and maintain your professional competence

Standards of Professional Conduct:

  • Professionalism
  • Integrity of the capital markets
  • Duties to clients
  • Duties to employers
  • Investment analysis and recommendations
  • Conflicts of interest

Regular Updation/Review of Code and Standards:
CFAI conducts a periodic review of the Code and Standards as well as the accompanying Standards of Practice Handbook.

Here's a sample question to give you a feel of questions from the topic:

Which of the following is NOT part of the CFAI's Code of Ethics?

A.Integrity and dignity


C.Contractual provisions

D.Independent judgment

Do go through this article for some of the basic concepts on CFA Ethics.


About the Author

Trusted by Fortune 500 Companies and 10,000 Students from 40+ countries across the globe, it is one of the leading International Training providers for Finance Certifications like FRM®, CFA®, PRM®, Business Analytics, HR Analytics, Financial Modeling, and Operational Risk Modeling. EduPristine has conducted more than 500,000 man-hours of quality training in finance.

Popular Courses

Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA® Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA® Institute, CFA® Program, CFA® Institute Investment Foundations and Chartered Financial Analyst® are trademarks owned by CFA® Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to and we will rectify it.

Post ID = 3745