“Code of Ethics and Standards of Professional Conduct” is a verbatim reprint of the CFA Institute Standards of Practice Handbook included in the CFA Curriculum. It includes the following learning outcomes.
Members and Candidates must not knowingly make any misrepresentations relating to investment analysis, recommendations, actions, or other professional activities.
The CFA Program curriculum includes the following framework for financial statement analysis. It can be used to evaluate potential investments in a company’s securities, to determine a company’s credit-worthiness, or to evaluate the performance of its subsidiaries.
Members and Candidates must use reasonable care and judgment to achieve and maintain independence and objectivity in their professional activities. Members and Candidates must not offer, solicit, or accept any gift, benefit, compensation, or consideration that reasonably could be expected to compromise their own or another’s independence and objectivity.
There are many sources available for analysts evaluating a company’s financial performance.
Members and Candidates must understand and comply with all applicable laws, rules, and regulations (including the CFA Institute Code of Ethics and Standards of Professional Conduct) of any government, regulatory organization, licensing agency, or professional association governing their professional activities. In the event of conflict, Members and Candidates must comply with the more strict law, rule, or regulation. Members and
Candidates must not knowingly participate or assist in and must dissociate from any violation of such laws, rules, or regulations.
The financial statements found in company’s financial reports must be audited according to specific guidelines. The auditor must provide a written opinion called the auditor’s report.
The CFA Institute Standards of Professional Conduct read as follows.
As important as the four main financial statements are, the required notes to the statements are equally important. They provide essential information for understanding the financial statements. The notes to Apple’s 2020 financial statements run more than 20 pages, and include a variety of important information
CFA Institute members must act with integrity, competence, diligence, and 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.