| Standard I(A) Knowledge of the Law | Members must understand and comply with all applicable laws, rules, and regulations; when conflicts arise, follow the stricter requirement |
| Standard I(B) Independence and Objectivity | Members must maintain independence and objectivity; must not accept gifts or benefits that could compromise professional judgment |
| Standard I(C) Misrepresentation | Members must not knowingly make false or misleading statements relating to professional activities |
| Standard I(D) Misconduct | Members must not engage in dishonesty, fraud, deceit, or any act reflecting adversely on professional integrity |
| Standard I(E) Competence | Members must maintain and improve their professional competence and stay current with developments |
| Standard II(A) Material Nonpublic Information | Members must not act or cause others to act on information that is both material and nonpublic |
| Standard II(B) Market Manipulation | Members must not engage in practices that distort prices or artificially inflate trading volume |
| Standard III(A) Loyalty, Prudence, and Care | Members owe a duty of loyalty to clients and must act with reasonable care and prudent judgment; client interests come first |
| Standard III(B) Fair Dealing | Members must deal fairly and objectively with all clients; does not require identical treatment but prohibits systematic disadvantage |
| Standard III(C) Suitability | Members must ensure that investment recommendations and actions are suitable for the client’s financial situation, objectives, and constraints |
| Standard III(D) Performance Presentation | Members must present performance information that is fair, accurate, and complete; must not cherry-pick or misstate results |
| Standard III(E) Preservation of Confidentiality | Members must keep client information confidential unless disclosure is permitted by the client, required by law, or involves illegal activity |
| Standard IV(A) Loyalty (to Employers) | Members must act for the employer’s benefit and not deprive the employer of skills, knowledge, or proprietary information |
| Standard IV(B) Additional Compensation Arrangements | Members must obtain written consent from all parties before accepting compensation or benefits from third parties that could create a conflict |
| Standard IV(C) Responsibilities of Supervisors | Supervisors must make reasonable efforts to ensure compliance by those under their supervision; cannot delegate this responsibility |
| Standard V(A) Diligence and Reasonable Basis | Members must have a reasonable and adequate basis, supported by research, for all recommendations and actions |
| Standard V(B) Communication with Clients | Members must disclose the investment process, distinguish fact from opinion, and identify significant risks and limitations |
| Standard V(C) Record Retention | Members must maintain records supporting analysis and recommendations for at least 7 years; records belong to the employer |
| Standard VI(A) Disclosure of Conflicts | Members must disclose all matters that could reasonably impair independence and objectivity; disclosures must be prominent and timely |
| Standard VI(B) Priority of Transactions | Transaction priority: client first, then employer, then personal; front-running is prohibited |
| Standard VI(C) Referral Fees | Members must disclose any compensation received for referrals to employer, clients, and prospective clients before services begin |
| Standard VII(A) Conduct in CFA Programs | Members must not compromise the integrity of CFA exams (no cheating, no sharing content, no misrepresenting on conduct statements) |
| Standard VII(B) Reference to CFA | ”CFA” is an adjective (CFA charterholder), not a noun; must not exaggerate the meaning of the designation or imply superior performance |
| Material information | Information that a reasonable investor would consider important in making an investment decision or that would significantly affect a security’s price |
| Nonpublic information | Information not yet disseminated to the marketplace through recognized public channels |
| Mosaic theory | An analyst may reach conclusions by combining material public information with nonmaterial nonpublic information without violating MNPI rules |
| Information barrier (firewall) | Procedures (physical and electronic) that prevent material nonpublic information from flowing between firm departments |
| Market manipulation | Practices designed to distort market prices or volume; includes information-based (spreading false info) and transaction-based (wash trades, spoofing) |
| Fiduciary duty | The highest standard of care; requires acting solely in the beneficiary’s best interest with undivided loyalty |
| Fair dealing | Treating all clients objectively and without systematic favoritism; does not mean identical service but equitable treatment |
| Suitability | The requirement that recommendations fit the client’s risk tolerance, return objectives, time horizon, liquidity needs, tax situation, and constraints |
| Front-running | Trading for one’s own account (or the firm’s account) ahead of client orders to profit from anticipated price movement caused by those orders |
| Soft dollars (soft commissions) | Using client brokerage commissions to obtain research or other services; must benefit the client and be disclosed |
| Proxy voting | Voting on corporate matters on behalf of clients; must be done in clients’ best interests in an informed and responsible manner |
| Misrepresentation | Any untrue or misleading statement of fact, including omission of material information, in professional activities |
| Plagiarism | Using another person’s work (research, models, charts, analysis, ideas) without proper attribution |
| Whistleblowing | Reporting an employer’s or colleague’s illegal or unethical activities to regulatory authorities; not a violation of employer loyalty |
| Independent practice | Engaging in competitive business activities outside of employment; requires employer’s consent |
| Record retention | Maintaining supporting documentation for analysis, recommendations, and actions; CFA Institute recommends a minimum of 7 years |
| Referral fees | Compensation received (or paid) for recommending products, services, or professionals to clients; must be fully disclosed |
| Priority of transactions | The ethical ordering of trade execution: clients first, employer second, personal last |