Chapter 2: Guidance for Standards I–VII

In this section

• Standard I – Professionalism
  Discover the core tenets of Standard I – Professionalism under the CFA Institute Code and Standards, including practical examples, key requirements, and guidelines for promoting integrity and objectivity in the finance profession.
• Standard II – Integrity of Capital Markets
  Explores how CFA professionals uphold transparency and fairness in global capital markets by addressing insider trading, market manipulation, and best practices for compliance.
• Standard III – Duties to Clients
  Explore the crucial responsibilities financial professionals owe to their clients, including loyalty, prudence, care, fair dealing, suitability, performance reporting, and confidentiality.
• Standard IV – Duties to Employers
  Explore how finance professionals fulfill employer obligations through loyalty, transparent compensation practices, and strong supervision to uphold ethical and professional standards.
• Standard V – Investment Analysis, Recommendations, and Actions
  Explore the importance of diligence, effective communication, and record retention in investment analysis and recommendations, all while fulfilling CFA Institute’s Standard V requirements.
• Standard VI – Conflicts of Interest
  A comprehensive guide to identifying, disclosing, and managing conflicts of interest in the investment profession, with real-life examples and best practices to ensure compliance with CFA ethical standards.
• Standard VII – Responsibilities as a CFA Institute Member or CFA Candidate
  Explore the ethical obligations, conduct guidelines, and best practices every CFA Institute member or candidate must follow under Standard VII, including exam protocol, designation usage, and professional integrity.
• Common Pitfalls and Violations
  Learn to identify and address the most common ethical pitfalls when applying the CFA Institute Standards I–VII, including conflicts of interest, misleading performance metrics, and inadequate research practices.
• Recommended Procedures and Best Practices
  Explore key tactics and strategies for implementing ethical guidelines within financial organizations, including codes of conduct, compliance training, and disclosures.
• Practical Examples and Case Analyses
  Explore real-world insider trading incidents, portfolio management conflicts, and research reporting errors to enhance your ethical decision-making skills under CFA Standards.
• Strategies for Enhancing Professional Standards
  Learn proactive strategies to foster ethical leadership, strengthen oversight, and build an organizational culture rooted in consistent, high-integrity professional standards.
• Collaboration and Communication Among Stakeholders
  Explore how cross-functional teams, industry partnerships, and transparent client interactions foster robust ethical practices within financial organizations.
• Evolving Ethical Considerations in Data and Technology
  Explore the growing ethical challenges in data analytics and AI for finance. Learn best practices on data privacy, algorithmic bias, and real-time electronic trading within the CFA Code and Standards.
• Harmonizing Standards Across Multiple Jurisdictions
  Exploring the challenges of global ethical compliance, mitigating conflicts between local laws and the CFA Institute Code, and establishing firm-wide consistency across regions.