Code of Ethics

What it means

The aspirational statement of how members and candidates should conduct themselves. It sets the principles; the Standards of Professional Conduct are what is actually enforced.

Where it appears in the syllabus

• Ethical & Professional StandardsCFA Level I · exam weight 10–15% · The Code, the seven Standards, and how examiners phrase violations.
• Ethical & Professional StandardsCFA Level II · exam weight 10–15% · The same Standards, applied to dense vignettes with competing duties.
• Ethical & Professional StandardsCFA Level III · exam weight 10–15% · The Standards plus the Asset Manager Code — which appears only at Level III.

Related terms

• Standards of Professional ConductThe seven enforceable standards covering professionalism, integrity of capital markets, duties to clients, duties to…
• Diligence and reasonable basisThe requirement that any recommendation or action rest on adequate research and analysis that could be defended if…
• Fair dealingTreating all clients fairly when disseminating recommendations or taking investment action.
• Fiduciary dutyThe obligation to act in another party’s interest ahead of your own, with the care and loyalty that relationship…
• Front-runningTrading ahead of a client order to benefit from the price move that order will cause.
• Independence and objectivityThe requirement to use reasonable care and judgement to keep independence, and to refuse any gift or pressure that…