Groundlearn / Glossary / Mosaic theory
Mosaic theory
A CFA term, defined in plain English with the distinction examiners test.
What it means
Combining public information with non-material non-public information to reach a material conclusion. Doing so is permitted.
The exam angle
The defence of a good analyst. Keep the notes: the file showing how the conclusion was assembled is what distinguishes a mosaic from an inside tip.
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.
- 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…
Educational content only. This is not financial, investment, legal or regulatory advice. Check the official curriculum for your own exam before relying on any definition here.
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