Independence and objectivity

What it means

The requirement to use reasonable care and judgement to keep independence, and to refuse any gift or pressure that could compromise it.

The exam angle

Modest, customary token gifts from clients may be accepted with disclosure to the employer; anything from a company you cover is the problem case.

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.

Related terms

• Code of EthicsThe aspirational statement of how members and candidates should conduct themselves.
• 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.
• Front-runningTrading ahead of a client order to benefit from the price move that order will cause.
• Loyalty to employerThe duty to act for the employer’s benefit, not to deprive it of your skills, and not to divulge confidential…
• Market manipulationTransactions or information intended to distort prices or artificially inflate trading volume, in order to mislead…