- CFA Exams
- 2024 Level II
- Topic 10. Ethical and Professional Standards
- Learning Module 47. Code of Ethics and Standards of Professional Conduct
- Subject 1. The Six Components of the Code of Ethics
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Subject 1. The Six Components of the Code of Ethics PDF Download
Members and Candidates must:
- Act with integrity, competence, diligence, respect, and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and other participants in the global capital markets.
- Place the integrity of the investment profession and the interests of clients above their own personal interests.
- Use reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities.
- Practice and encourage others to practice in a professional and ethical manner that will reflect credit on themselves and the profession.
- Promote the integrity and viability of the global capital markets for the ultimate benefit of society.
- Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.
The Code of Ethics establishes the framework for ethical decision-making in the investment profession.
It applies to CFA Institute's members, CFA charterholders and CFA candidates.
User Contributed Comments 64
| User | Comment |
|---|---|
| seanzhang | ...obey the concrete truth ...care the public benifits as well as his own |
| myfree | Key Words - Integrity, Professionalism, Competence, Reasonable care |
| dman | 4 components of code of ethics. service to stakeholders. ethical,personal competence,professional judgement,integrity, competence, dignity , ethics. |
| noorlevel1 | 1. Act with ICDE when dealing with ... 2. Practice in professional and ethical manner 3. maintain and improve Competence 4. use reasonable care, independent professional judgement |
| lcota | Worship the almighty dollar, but don't burn anybody. |
| creole | Act with integrity, competence, dignity... Practice and encourage others.. Maintein and improve the competence... Use reasoonable care.... |
| zzft | hold key words and grasp the means of code |
| shalom | 1. icd 2. proffessional and ethical manner 3. competence 4. reasonable care. |
| jamo | competence - to client and yourself Integrity - to client, fellowworkmates and lastly yourself |
| handodi | Act with integrity,practice,mentain & use reasonable care to be a member |
| krisskros | satisfy your client |
| moonprayer | integrity encourage others competence independent |
| baple | integrity,professional and ethical |
| Teetee | Encourage others to be ethical via self-integrity, always acting with care/judgement while improving upon competence of fellows and self. |
| margin | PROMOTE THE INTEGRITY OF, AND UPHOLD THE RULES GOVERNING, CAPITAL MARKETS!!! |
| shpeon | 1. With integrety, competence, dignity, & ethic 2. Practic ethic & profession and preach others 3. Improve competence 4. Independent |
| danlan | Resonable care is related to independent, professional judgement |
| will3 | Trying to act professionally, competently, ethicallly, dilgently & sound judgement to firstly you as an investor and to other proffesional investos |
| maverickcfa | CFA belief in integrity, diligence, respect with the stakeholders Integrity beyond everything is the key of succesful CFA Detailed Judgment involving careful analysis combined with data and fact learn, learn, study, study to upgrade your CFA skills |
| awuzie | 1.ICDR&E manner when dealing with P,C,PC,E,E,C&CM 2.Place Integrity of C & PC above own interest 3.Reasonable care & proffesional judgement 4.Practise and encourage others to practise 5.Improve competence of urself and others |
| mpoki | Integrity,completeness and being indepent is the way CFA works. CFA belief in the professional work Encourage others to work in professional way |
| bamby | analysing in an ethical manner will lead you to correct decisions |
| SammyR | Integrity, Competence, Dignity, Independence, completeness |
| calvininthecity | Act with Integrity, Competence, Diligence and Ethically with Clients, Future clients, Employers, employees, colleagues and other members of capital markets. Uphold and promote the integrity of the global capital market Take Care and display due diligence when making investment decisions, recommendations Display competence and encourage improvement competence amongst colleagues |
| Nayan | C = COMPLETE F = FINE A = ABLE |
| clarkent | act I,C,D,R,E practice P,E maintain and improve C use R to all parties, profession, professionals and obey capiatal market rules |
| shan | CFA:- Give a clear prospects to the intended Investees regarding the future growth of their current assets. |
| afo4risky | integrity, ethics and public trust |
| buddhalight | being ethical means being professional |
| baple | Ingtegrity(ICDRE)- Investment Profession (I)-Capital Marke C - RC(Diligent)-Professionalism- Competence |
| Kapil | Investment Management requires Integrity,Ethical Values,Professional Competence and Dilligence. |
| durikang | Integrity Competence Professionism |
| k4head | Integrity Dual care Professionalism Competence Indepentdent |
| Yugo | Act I C D R in Global Capital Markets Professionalism Work Smart Reflect CFA |
| baaba | adore the cedi, be mindful professional, competence is the key |
| xyzanand | After going thru the questions, here are the combinations: Integrity :: All :: Promote Interest :: Client :: Professional Integrity Independence :: Reasonable Care Competence :: Self Improve :: Encourage Professional :: Credit :: Profession |
| mirfanrana | integrity competence dilegense respect |
| archibee | empasized on Integrity,competence,reasonable care to all parties involeved |
| manyu | act with due diligence trying to offfer as much information to the client and at the same time restricting yourself to only the required informationn. |
| saada | the same ethics apply in all professions and they should be upheld for economies to move forward.bravo CFA |
| irshaidat | without ethics, I think that the world economy will collapse |
| ameerJ | entegrity,making investment decision, professionalism |
| yy1lauk | -Act I,C, D, R, E -Client interests > Own Interests -reasonable care + independent professionism -Practise and Encourage ethical manner -Promote , Maintain and Improve |
| wundac | ICDRE My interest < C, PC Improve oneself Uphold rules of governing body Be Professional |
| butafly | - Act DRICE - choose intergrity of profession + clients interest over own - use care + profesional judgement - practice + encourage others to uphold credibility to the profession - abide by capitla market rules - improve competence in the profession |
| Shalva | well I think the following version will suffice: 1)ICDR; + Ethical manner 2)Clients Interest>Personal Interest; + integrity 3)Independence, Professionalism, Reasonable Care 4)Act ethically; encourage others 5)Uphold Rules, promote Integrity 6)strive to be more competent! |
| AUAU | Well, quite lot stuff. But be reinforced by Qs & As |
| dblueroom | haha this has the longest comments. ethics questions are never the easiest on any exam. |
| mont0621 | An easy way for me to learn this part is with the word: RICED (Respect, Integrity, Competence, Ethics, Diligence |
| anneki | i think RICED like mont0621 is the easiest way to remember this |
| chris12345 | im just gonna rinse everyone (ethically) |
| niemeljason | After all the hard work no wonder why becoming a CFA charterholder is so PRICED !!! Professionalism Respect Integrity Competence Ethics Diligence ....Here are the 6 components of the Code !!! |
| bantoo | 1.Act ICDRE&E with all stakeholders in global capital market. 2. Integrity of Investment profession& Client>Personal Interest 3.Reasonable care and exercise independent judgment. 4. Practice and encourage others to practice in ethical and professional manner. 5. Promote integrity of capital market. 6.Improve professional competence and inspire others to do the same. |
| kahh | Put yourself in the investor's shoes, how would you want your financial adviser behave with your life savings? |
| sgossett86 | My alarm clock plays this back to me every morning. I read this with my eggs. I read it while i'm at work. I play it on my phone while i'm driving. |
| vatsal92 | Components of Code of Ethics:- (PRICER) - Professionalism - Reflects credit to other professions. - Respect - Everyone - Integrity - Investment profession and interests of clients above self interests - Competence - Maintain and improve competence - Ethics - Uphold the rules - Reasonable Care - Exercise independent professional judgment |
| kogaurav | Integrity,Reasonable care, professionalism, Integrity, Competence and Ethical |
| Cream_flow | Anybody knows how to copy paste out of this page? |
| Inaganti6 | @cream_flow that would be a violation on behalf of the candidates and section ID or 1(D). |
| berns23 | Please take note of the change to one of the code of ethics principles which was amended in 2016. "Promote the integrity and viability of the global capital markets for the ultimate benefit of society." |
| maryprz14 | "above their own personal interest" ... lol |
| kngsea003 | Anyone have the issue that notes print as blank pages? |
| odette | Ethics is all about INTEGRITY. |
| b25331 | We stand united |
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
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