Standards of Professional Conduct

What it means

The seven enforceable standards covering professionalism, integrity of capital markets, duties to clients, duties to employers, investment analysis and recommendations, conflicts of interest, and responsibilities as a member or candidate.

The exam angle

Questions usually turn on which standard applies rather than on whether something felt wrong. Learn the seven headings in order.

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

• 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.
• 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…