2025 CAIA L1
ETHICAL AND
PROFESSIONAL
STANDARDS||
60 ACTUAL
QUESTIONS &
CORRECT
DETAILED
ANSWERS||
100% CORRECT.
1. Standard I (A): Professionalism: Knowledge of the Law -
1) Must understand and comply with all applicable laws, rules and regulations(in-
cluding CFA Institute Code of Ethics and Standards of Professional Conduct) of any
government, regulatory organization, licensing agency, or professional association
governing their professional activities.
2) Must comply with the more strict rule, law or regulation
3) Must not knowingly participate or assist in and must dissociate from any violation
of such laws, rules, or regulations
2. Must adhere to following 2 principles: 1) All laws that apply to their professional
activities must be complied with
2) The Code of Standards may never be violated even if the conduct is otherwise
, legal
3. What must be done if you suspect a violation is taking place?: Step 1)
Approach the compliance department or the supervisor
- May, approach the violating party
- May, consult with the legal team
- However, must also approach their supervisor or compliance department
Step 2) Dissociate
- Should dissociate or it may be viewed as continued participation; active dissociation
required
4. Compliance procedures Standard I (A): For individuals:
- Stay informed
- Review procedures
- Maintain current files
- Understand applicable laws
- Seek legal counsel
- Dissociation
For firms:
- Develop code of ethics
- Provide information on applicable laws
- Establish procedures for reporting violations
5. Standard I (B): Professionalism: Independence and Objectivity - Must use rea-
sonable care and judgment to achieve and maintain independence and objectivity
in their personal or professional activities. Must not offer, solicit, or accept any
ETHICAL AND
PROFESSIONAL
STANDARDS||
60 ACTUAL
QUESTIONS &
CORRECT
DETAILED
ANSWERS||
100% CORRECT.
1. Standard I (A): Professionalism: Knowledge of the Law -
1) Must understand and comply with all applicable laws, rules and regulations(in-
cluding CFA Institute Code of Ethics and Standards of Professional Conduct) of any
government, regulatory organization, licensing agency, or professional association
governing their professional activities.
2) Must comply with the more strict rule, law or regulation
3) Must not knowingly participate or assist in and must dissociate from any violation
of such laws, rules, or regulations
2. Must adhere to following 2 principles: 1) All laws that apply to their professional
activities must be complied with
2) The Code of Standards may never be violated even if the conduct is otherwise
, legal
3. What must be done if you suspect a violation is taking place?: Step 1)
Approach the compliance department or the supervisor
- May, approach the violating party
- May, consult with the legal team
- However, must also approach their supervisor or compliance department
Step 2) Dissociate
- Should dissociate or it may be viewed as continued participation; active dissociation
required
4. Compliance procedures Standard I (A): For individuals:
- Stay informed
- Review procedures
- Maintain current files
- Understand applicable laws
- Seek legal counsel
- Dissociation
For firms:
- Develop code of ethics
- Provide information on applicable laws
- Establish procedures for reporting violations
5. Standard I (B): Professionalism: Independence and Objectivity - Must use rea-
sonable care and judgment to achieve and maintain independence and objectivity
in their personal or professional activities. Must not offer, solicit, or accept any
