Study
Session
1
Ethical
and
Professional
Standards
WI-iccetl complaints about a member or candidate's professional conducr that are
I-cceived
by
the Profession a1 Conduct staff.
Evidence
of
misconduct by a inclmber or candidate that the Professional
Conduct staff received through public sources,
such as a media article or
broadcast.
A report
by a CFA exam proctor of a possible violation during the examination.
Once an inquiry is begun, the Professional Conduct staff may request
(in writing)
an
explallatioll fro111 the subject member or candidate, and may:
Interview the subject member or candidate.
Interview the complainant or other third parties.
Collect documents and records relevant to the investigation.
The Designated Officer may decide:
That no disciplinary
sanctions are appropriate.
To issue a cautionary letter.
To discipline the member or candidate.
In a case where the
Designated Officer finds a violation has occurred and proposes a
disciplinary sanction, the member or candidate may accept or reject the sanction. If
the member or candidate chooses to reject the sanction, the matter will be referred
to a panel of CFA Institute members for a hearing. Sanctions imposed may include
condemnation by the member's peers or suspension of the candidate's continued
participation in the CFA Program.
Code
and
Standards
Questions about the Code and Standards will most likely be application questions.
You will be given a situation and be asked to identify whether or not a violation
occurs, what the violation is, or what the appropriate course of action should be.
You are not required to know the Standards by number, just
by name.
One of the first Learning Outcome Statements (LOS) in the Level
I
curriculum is
to state the six components of the Code of Ethics. Candidates should
rnemorize
the
Code of Ethics.
Members of the CFA
Illstitute [including Chartered Financial Analystm (CFAm)
charterholders] and candidates for the CFA designation (Members and Candidates)
1nust:
Act with integrity, competence, diligence, respect, and in all ethical manner with
the public, clients, prospective clients, employers, employees, colleagues in the
ii~vcst-n~ent prciCcssion, and other participants
in
thc global capital markets.
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