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.

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