Ethical and Professional Standards
The candidate should be able to demonstrate a thorough knowledge of the CFA Institute Code of
Ethics and Standards of Professional Conduct, familiarity with the Global Investment
Performance Standards, and familiarity with corporate governance issues and risks affecting companies. Study Session 1
Ethical and Professional Standards
Reading Assignments
1.*
“Code of Ethics and Standards of Professional Conduct” Standards of Practice
Handbook, 9th edition (CFA Institute, 2005)
*
2.
“Guidance” for Standards I – VII, Standards of Practice Handbook, 9th edition (CFA
Institute, 2005)
*
3.
Introduction to the Global Investment Performance Standards (GIPS®)
Global Investment Performance Standards (GIPS®), pp. i–iii and 1–9, (CFA Institute,
4.*
2005)
A.
Preface: Background of the GIPS Standards
B.
I. Introduction
C.
II.0. Provisions of the Global Investment Performance Standards – Fundamentals of Compliance
*
5.
The Corporate Governance of Listed Companies: A Manual for Investors (CFA Institute,
2005)
Learning Outcomes
1.
“Code of Ethics and Standards of Professional Conduct”
The Code of Ethics establishes the framework for ethical decision making in the investment profession. The candidate should be able to state the six components of the
Code of Ethics.
The Standards of Professional Conduct are organized into seven standards:
I.
Professionalism
II. Integrity of Capital Markets
III. Duties to Clients and Prospective Clients
IV. Duties to Employers
V. Investment Analysis, Recommendations, and Action
VI. Conflicts of Interest
VII. Responsibilities as a CFA Institute Member or CFA Candidate
Each standard contains multiple provisions for which the candidate is responsible. The candidate should be able to identify the ethical responsibilities required by the Code and
Standards.

*

Readings