Mastering CFA Ethics: 50 Essential Questions
to Build Your Professional Reputation
📘 CFA Level I – Ethics and Professional Standards
Q1. What is the overarching goal of the CFA Institute’s Code of Ethics?
A: To foster trust and uphold integrity in the investment profession.
✅ Why it matters: Your reputation is your currency. Mastering this builds long-
term client trust.
Q2. Which standard prohibits plagiarism?
A: Standard I(C): Misrepresentation – includes copying without proper citation.
✅ Real-world tie-in: Use this to protect your reports and avoid career-killing
mistakes.
Q3. Can a CFA candidate use the CFA designation before earning it?
A: No. It is a clear violation of Standard VII(B).
✅ Pro insight: Proper use of the designation builds credibility. Don’t cut corners.
Q4. What standard is violated if a member trades on insider information?
A: Standard II(A): Material Nonpublic Information
✅ Career edge: Know this well—ethics violations derail careers instantly.
, Q5. What’s the standard for disclosing conflicts of interest?
A: Standard VI(A): Disclosure of Conflicts – full, clear disclosure is required.
✅ Why it sells: Clients love transparency. This builds trust and referrals.
Q6. Can you accept gifts from clients?
A: Yes, if it’s disclosed to your employer and doesn't compromise your objectivity.
✅ Sales pitch: Knowing the boundary protects your integrity and job.
Q7. What is “duty of loyalty” in fiduciary duty?
A: It means always putting the client’s interest above your own.
✅ Takeaway: That’s how long-term client relationships are built.
Q8. What’s the purpose of GIPS (Global Investment Performance
Standards)?
A: To ensure transparent and comparable performance reporting.
✅ Pro tip: GIPS compliance is a gold star on your resume.
Q9. What are soft dollars?
A: Client brokerage commissions used to buy research or services.
✅ Ethics hook: These must benefit the client or it's a violation.
Q10. Can you guarantee investment returns?
to Build Your Professional Reputation
📘 CFA Level I – Ethics and Professional Standards
Q1. What is the overarching goal of the CFA Institute’s Code of Ethics?
A: To foster trust and uphold integrity in the investment profession.
✅ Why it matters: Your reputation is your currency. Mastering this builds long-
term client trust.
Q2. Which standard prohibits plagiarism?
A: Standard I(C): Misrepresentation – includes copying without proper citation.
✅ Real-world tie-in: Use this to protect your reports and avoid career-killing
mistakes.
Q3. Can a CFA candidate use the CFA designation before earning it?
A: No. It is a clear violation of Standard VII(B).
✅ Pro insight: Proper use of the designation builds credibility. Don’t cut corners.
Q4. What standard is violated if a member trades on insider information?
A: Standard II(A): Material Nonpublic Information
✅ Career edge: Know this well—ethics violations derail careers instantly.
, Q5. What’s the standard for disclosing conflicts of interest?
A: Standard VI(A): Disclosure of Conflicts – full, clear disclosure is required.
✅ Why it sells: Clients love transparency. This builds trust and referrals.
Q6. Can you accept gifts from clients?
A: Yes, if it’s disclosed to your employer and doesn't compromise your objectivity.
✅ Sales pitch: Knowing the boundary protects your integrity and job.
Q7. What is “duty of loyalty” in fiduciary duty?
A: It means always putting the client’s interest above your own.
✅ Takeaway: That’s how long-term client relationships are built.
Q8. What’s the purpose of GIPS (Global Investment Performance
Standards)?
A: To ensure transparent and comparable performance reporting.
✅ Pro tip: GIPS compliance is a gold star on your resume.
Q9. What are soft dollars?
A: Client brokerage commissions used to buy research or services.
✅ Ethics hook: These must benefit the client or it's a violation.
Q10. Can you guarantee investment returns?
