Code of Ethics
And Standards of
Professional Conduct
Preamble
The CFA Institute Code of Ethics and Standards of Professional Conduct are fundamental to the values of CFA Institute and essential to
achieving its mission to lead the investment profession globally by setting high standards of education, integrity, and professional excellence.
High ethical standards are critical to maintaining the public’s trust in financial markets and in the investment profession. Since their creation
in the 1960s, the Code and Standards have promoted the integrity of CFA Institute members and served as a model for measuring the ethics
of investment professionals globally, regardless of job function, cultural differences, or local laws and regulations. All CFA Institute members
(including holders of the Chartered Financial Analyst® [CFA®] designation) and CFA candidates must abide by the Code and Standards and are
encouraged to notify their employer of this responsibility. Violations may result in disciplinary sanctions by CFA Institute. Sanctions can include
revocation of membership, revocation of candidacy in the CFA Program, and revocation of the right to use the CFA designation.
The Code of Ethics
Members of CFA Institute (including CFA charterholders) and candidates for the CFA designation (“Members and Candidates”) must:
• Act with integrity, competence, diligence, respect, and in an • Practice and encourage others to practice in a professional and
ethical manner with the public, clients, prospective clients, ethical manner that will reflect credit on themselves and the
employers, employees, colleagues in the investment profession, profession.
and other participants in the global capital markets. • Promote the integrity of and uphold the rules governing capital
• Place the integrity of the investment profession and the interests markets.
of clients above their own personal interests. • Maintain and improve their professional competence and strive
• Use reasonable care and exercise independent professional judg- to maintain and improve the competence of other investment
ment when conducting investment analysis, making investment professionals.
recommendations, taking investment actions, and engaging in
other professional activities.
Standards of Professional Conduct
I. PROFESSIONALISM
A. Knowledge of the Law. Members and Candidates must under- C. Misrepresentation. Members and Candidates must not knowingly
stand and comply with all applicable laws, rules, and regulations make any misrepresentations relating to investment analysis,
(including the CFA Institute Code of Ethics and Standards of recommendations, actions, or other professional activities.
Professional Conduct) of any government, regulatory organiza- D. Misconduct. Members and Candidates must not engage in any
tion, licensing agency, or professional association governing professional conduct involving dishonesty, fraud, or deceit or
their professional activities. In the event of conflict, Members and commit any act that reflects adversely on their professional repu-
Candidates must comply with the more strict law, rule, or regula- tation, integrity, or competence.
tion. Members and Candidates must not knowingly participate
or assist in and must dissociate from any violation of such laws, II. INTEGRITY OF CAPITAL MARKETS
rules, or regulations. A. Material Nonpublic Information. Members and Candidates who
B. Independence and Objectivity. Members and Candidates must possess material nonpublic information that could affect the
use reasonable care and judgment to achieve and maintain inde- value of an investment must not act or cause others to act on the
pendence and objectivity in their professional activities. Members information.
and Candidates must not offer, solicit, or accept any gift, benefit, B. Market Manipulation. Members and Candidates must not engage
compensation, or consideration that reasonably could be expected in practices that distort prices or artificially inflate trading volume
to compromise their own or another’s independence and objectivity. with the intent to mislead market participants.
© 2010 CFA Institute www.cfainstitute.org
And Standards of
Professional Conduct
Preamble
The CFA Institute Code of Ethics and Standards of Professional Conduct are fundamental to the values of CFA Institute and essential to
achieving its mission to lead the investment profession globally by setting high standards of education, integrity, and professional excellence.
High ethical standards are critical to maintaining the public’s trust in financial markets and in the investment profession. Since their creation
in the 1960s, the Code and Standards have promoted the integrity of CFA Institute members and served as a model for measuring the ethics
of investment professionals globally, regardless of job function, cultural differences, or local laws and regulations. All CFA Institute members
(including holders of the Chartered Financial Analyst® [CFA®] designation) and CFA candidates must abide by the Code and Standards and are
encouraged to notify their employer of this responsibility. Violations may result in disciplinary sanctions by CFA Institute. Sanctions can include
revocation of membership, revocation of candidacy in the CFA Program, and revocation of the right to use the CFA designation.
The Code of Ethics
Members of CFA Institute (including CFA charterholders) and candidates for the CFA designation (“Members and Candidates”) must:
• Act with integrity, competence, diligence, respect, and in an • Practice and encourage others to practice in a professional and
ethical manner with the public, clients, prospective clients, ethical manner that will reflect credit on themselves and the
employers, employees, colleagues in the investment profession, profession.
and other participants in the global capital markets. • Promote the integrity of and uphold the rules governing capital
• Place the integrity of the investment profession and the interests markets.
of clients above their own personal interests. • Maintain and improve their professional competence and strive
• Use reasonable care and exercise independent professional judg- to maintain and improve the competence of other investment
ment when conducting investment analysis, making investment professionals.
recommendations, taking investment actions, and engaging in
other professional activities.
Standards of Professional Conduct
I. PROFESSIONALISM
A. Knowledge of the Law. Members and Candidates must under- C. Misrepresentation. Members and Candidates must not knowingly
stand and comply with all applicable laws, rules, and regulations make any misrepresentations relating to investment analysis,
(including the CFA Institute Code of Ethics and Standards of recommendations, actions, or other professional activities.
Professional Conduct) of any government, regulatory organiza- D. Misconduct. Members and Candidates must not engage in any
tion, licensing agency, or professional association governing professional conduct involving dishonesty, fraud, or deceit or
their professional activities. In the event of conflict, Members and commit any act that reflects adversely on their professional repu-
Candidates must comply with the more strict law, rule, or regula- tation, integrity, or competence.
tion. Members and Candidates must not knowingly participate
or assist in and must dissociate from any violation of such laws, II. INTEGRITY OF CAPITAL MARKETS
rules, or regulations. A. Material Nonpublic Information. Members and Candidates who
B. Independence and Objectivity. Members and Candidates must possess material nonpublic information that could affect the
use reasonable care and judgment to achieve and maintain inde- value of an investment must not act or cause others to act on the
pendence and objectivity in their professional activities. Members information.
and Candidates must not offer, solicit, or accept any gift, benefit, B. Market Manipulation. Members and Candidates must not engage
compensation, or consideration that reasonably could be expected in practices that distort prices or artificially inflate trading volume
to compromise their own or another’s independence and objectivity. with the intent to mislead market participants.
© 2010 CFA Institute www.cfainstitute.org
