Material non-public information (MNPI)

What it means

Information that has not been released to the market and that a reasonable investor would want before trading. Acting or causing others to act on it is prohibited.

The exam angle

Materiality and non-publicity are separate tests and both must hold. Selective disclosure to analysts does not make information public.

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.
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• 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.
• Independence and objectivityThe requirement to use reasonable care and judgement to keep independence, and to refuse any gift or pressure that…
• Loyalty to employerThe duty to act for the employer’s benefit, not to deprive it of your skills, and not to divulge confidential…