Ethical and Professional Standards

Reading 2. Code of Ethics and Standards of Professional Conduct

Learning Outcome Statements

a. describe the structure of the CFA Institute Professional Conduct Program and the process for the enforcement of the Code and Standards;

CFA Curriculum, 2020, Volume 1

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Subject 1. CFA Institute Professional Conduct Program

The basic structure for enforcing the Code and Standards: Rules of Procedure.

The Disciplinary Review Committee (DRC) enforces the Code and Standards.

Professional Conduct staff monitor compliance through Professional Conduct Statements, public complaints, public information, and media reports.

The rules related to information-gathering and conviction follow a criminal justice system approach. The procedures require a careful investigation of the charges followed by a hearing, findings and appeal.

An overview follows:

  • Grounds for Discipline. Any act which violates the Code and Standards.

  • Investigation by Designated Officer (DO). The officer may conclude the inquiry with no disciplinary sanction, issue a cautionary letter, or continue proceedings to discipline the member or candidate. If the investigation determines that a violation occurred, a disciplinary sanction is recommended. The member or candidate may accept the recommended sanction or proceed to a hearing panel.

  • Hearing. If the member rejects the proposed sanction, a case against the member will be prepared and take place in front of a hearing panel of three or more members.

Authorized sanctions include suspension or revocation of membership/designation, private/public censure, and private reprimand.

Take a QuizThere are 1 basic questions available.

User Contributed Comments 16

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tamj

i don't get it

magicchip

tamj, what is it that you dont get?

Oneea

Nice one

AUAU

It's simple but may pose some detailpoints.
Like (DO), ground for discopline & hearing.

Vabes

good

niemeljason

The "code and standards" tell you how to behave,you have to abide by the "Rules of procedures".Any misbehaviour will be investigated by the DO,using the DRC to determine what will be the punishments...

seedorf

yes its pose some detailpoints

dublin2010

where are the basic questions online?

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israt

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fsammari

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phoenix10

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lordnelson

Read the book titled 'Direct Path to the CFA Charter' by Rachel Bryant CFA to help study for the exams..