CFAI Practice: M02 — Code of Ethics and Standards of Professional Conduct

Total: 6 questions

Source: CFA Institute Practice Questions — Ethical and Professional Standards (2026)


Question 1

The Professional Conduct Program (PCP) enforcement process is most accurately described as:

  • A. a government regulatory body that prosecutes violations of securities law
  • B. an internal CFA Institute process that investigates and sanctions members and candidates who violate the Code and Standards
  • C. a voluntary peer-review process with no enforcement authority

Question 2

Which of the following events is least likely to trigger an inquiry by the Professional Conduct Program?

  • A. Self-disclosure by a member on their annual Professional Conduct Statement
  • B. A written complaint from a member of the public
  • C. A verbal conversation between two CFA members discussing market views

Question 3

The CFA Institute Code of Ethics contains how many components?

  • A. 5
  • B. 6
  • C. 7

Question 4

The Standards of Professional Conduct are organized into how many standards?

  • A. 5
  • B. 6
  • C. 7

Question 5

Disciplinary sanctions imposed by CFA Institute may include all of the following EXCEPT:

  • A. public censure and suspension of membership
  • B. revocation of the right to use the CFA designation
  • C. criminal prosecution and imprisonment

Question 6

The Code and Standards apply to which of the following groups?

  • A. Only CFA charterholders
  • B. CFA Institute members and candidates in the CFA Program
  • C. All investment professionals regardless of CFA affiliation