Ethical and Professional Standards

Reading 2. Code of Ethics and Standards of Professional Conduct

Learning Outcome Statements

b. state the six components of the Code of Ethics and the seven Standards of Professional Conduct;

CFA Curriculum, 2020, Volume 1

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Subject 2. The Six Components of the Code of Ethics

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.

Take a QuizThere are 6 basic questions available.

User Contributed Comments 64

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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