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2019 Curriculum CFA Program Level II Ethical and Professional Standards

Application of the Code and Standards

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Introduction

This reading presents cases to illustrate how the CFA Institute Code of Ethics and Standards of Professional Conduct (Code and Standards) can be applied in situations where professional and ethical judgement is required. Exhibit 1 presents a useful framework to help guide individuals in their ethical decision-making process and application of the Code and Standards. By identifying where the Code and Standards might be relevant and considering actions and consequences within this framework, individuals can make more ethically sound decisions. 

Although the framework’s components do not need to be addressed in the sequence shown, a review of the outcome should conclude the process. This review provides insights for improved decision making in the future.

The following cases focus on identifying violations of the Code and Standards, taking necessary corrective actions, and developing a policy statement to help prevent future violations by a firm’s employees. As you read through these cases, consider how applying the framework might have helped each individual in his or her decision making.

Learning Outcomes

The candidate should be able to:

  1. evaluate policies and practices for a firm and an individual in relation to the CFA Institute Code of Ethics and Standards of Professional Conduct;
  2. explain the appropriate action to take in response to conduct that violates the CFA Institute Code of Ethics and Standards of Professional Conduct.

Summary

This reading is a direct excerpt from the CFA Program curriculum and is provided as a benefit to members who wish to revisit or relearn certain concepts. You must be a CFA Institute member and log in to the website to gain access to this reading.

The collection is organized by topic rather than by level, and members can earn Continuing Education credit for this content.

1 CE

including 1 SER

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