Periodic Review of the Code and Standards
Revisions to the Codes and Standards and the Standards of Practice Handbook
The Standards of Practice Council (SPC) is the volunteer committee charged by the CFA Institute Board of Governors with providing continuous oversight of CFA Institute standards and fostering the integrity of the capital markets by developing and maintaining the Code of Ethics and Standards of Professional Conduct (Code and Standards). To meet this responsibility, the SPC periodically reviews the Code and Standards as well as the Standards of Practice Handbook (Handbook).
Subsequent to a recent periodic review, the SPC recommended the following changes to the Code and Standards. The Board of Governors approved these recommended changes and the revisions were incorporated in the 11th edition of the Standards of Practice Handbook, which became effective for members and candidates on 1 July 2014,
- The Code of Ethics now includes language that aligns with the mission of CFA Institute and reflects an investment professional's responsibility to protect the integrity of capital markets for the betterment of society.
- Standard IV(C): Responsibilities of Supervisors now focuses on the need for supervisors to take positive steps to promote compliance rather than just preventing violations.
- Standard V(B): Communication with Clients and Prospective Clients now includes a requirement to address risks and limitations as part of the investment process.
- Standard VII(A) now reflects the growth in educational programs of CFA Institute by encompassing additional programs beyond the CFA examination.
- The Handbook chapter “Ethics and the Investment Industry” expands the discussion on the importance of ethical conduct within the industry. The integrity of capital markets and its participants is vital to maintaining levels of efficiencies and trust that ultimately benefit society.
- Throughout the Handbook, guidance enhancements and new examples were added to cover a variety of current practices occurring within the investment industry such as social media usage and reliance upon quantitative models and processes.