Standard I(D): Misconduct

Members and Candidates must not engage in any professional conduct involving dishonesty, fraud, or deceit or commit any act that reflects adversely on their professional reputation, integrity, or competence.

Guidance

Standard I(D) addresses all conduct that reflects poorly on the professional integrity, good reputation, or competence of members and candidates. Behavior that damages trust or confidence in the professional could be a violation even if the activity is otherwise legal. One example would be drinking excessive amounts of alcohol during business hours.

Compliance

Members should encourage their firms to adopt a code of ethics, to provide a list of potential violations and the related sanctions, and to check references of potential employees.

Application

The CFA Institute Standards of Practice Handbook provides a number of examples of conduct that may violate Standard I(D): Misconduct. These include padding an expense report and overcharging for goods or services provided outside of work.

Typically not included under Standard I(D): Misconduct are legal transgressions resulting from civil disobedience in support of personal beliefs. For example, a trespassing arrest during a peaceful protest typically would not constitute misconduct under the Standards.