Members and Candidates must not knowingly make any misrepresentations relating to investment analysis, recommendations, actions, or other professional activities.
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.
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 CFA Institute Standards of Professional Conduct read as follows.
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.
The CFA Institute Professional Conduct Program administers the disciplinary process for CFA Institute. It investigates allegations, determines violations, imposes sanctions, conducts disciplinary proceedings, and discloses violations.
An effective framework for ethical decision-making should allow investment professionals to examine their choices in the context of conflicting interests.
Laws often codify ethical behavior, but legal and ethical conduct are not always the same.
There are several challenges that can make ethical behavior difficult. The first of these is overconfidence. Most people believe they are more ethical than average, even though this cannot be true in aggregate. Overconfidence can lead to faulty decision-making, and a failure to consider all of the relevant inputs to analyze a situation. A second…
As a relatively young profession, investment management has not established the same level of professionalism as other industries. Further, because of the interconnected global nature of the profession, local regulatory bodies have less influence and can often issue conflicting laws. Recognizing these shortcomings, CFA Institute has striven to become an advocate for best practices worldwide….