1. Act with integrity, competence, diligence, respect, and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues, and other capital-market participants.
2. Place the integrity of the investment profession and the interests of clients above their own personal interests.
3. Use reasonable care and exercise independent professional judgment.
4. Practice and encourage others to practice in a professional and ethical manner.
5. Promote the integrity and viability of the global capital markets.
6. Maintain and improve their professional competence and strive to improve the competence of other investment professionals.
2. Seven Standards (I–VII) Core
About: I (Professionalism), II (Capital Markets), III (Clients), IV (Employers), V (Investment Analysis), VI (Conflicts), VII (Member Responsibilities). 15-20% of L1 exam.Tóm tắt: 7 Standards. 15-20% đề L1.
I Professionalism — Knowledge of Law, Independence, Misrepresentation, Misconduct.
II Integrity of Capital Markets — MNPI, Market Manipulation.
III Duties to Clients — Loyalty/Prudence/Care, Fair Dealing, Suitability, Performance Presentation, Confidentiality.
IV Duties to Employers — Loyalty, Additional Compensation, Responsibilities of Supervisors.
V Investment Analysis — Diligence, Communication, Record Retention.
VI Conflicts of Interest — Disclosure, Priority of Transactions, Referral Fees.
VII Responsibilities — CFA Institute Conduct, CFA Designation Use.
Practice problem Practice
Practice problem
A CFA charterholder accepts a $20 box of chocolates from a client at year-end thanking her for good service. Violation?
Show solution
Standard I(B): Independence and Objectivity.
Modest, customary gifts from clients (already a client) typically permitted.
From prospective clients or vendors, stricter scrutiny applies.
No violation — modest customary gift from existing client is acceptable.