Revisions to the Code of Ethics and Standards of Professional Conduct

CFA Institute has published our Exposure Draft outlining a series of potential revisions to the CFA Institute Code of Ethics and Standards of Professional Conduct and is seeking comment by 6 March 2023.

Overview

CFA Institute has published our Exposure Draft outlining a series of potential revisions to the CFA Institute Code of Ethics and Standards of Professional Conduct.  

We invite CFA Institute members and interested parties to review the revisions under consideration and to submit comments during the 60-day public comment period ending 6 March 2023. Members who submit comments to [email protected] by the 6 March 2023 deadline are eligible to earn 1 PL/1 SER credit for their participation. Learn more about the proposed changes, the process for identifying these revisions, and what comes next. Further resources and registration for an informational webinar on 1 February can be found on the Code of Ethics and Standards of Professional Conduct webpage.

Why Does This Matter?

The CFA Institute Code of Ethics and Standards of Professional Conduct (Code and Standards) are fundamental to the values of CFA Institute and essential to achieving our mission to lead the investment professional globally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society.  

The Code and Standards remain the ethical benchmark for the conduct of investment professionals around the globe. All members of CFA Institute, including CFA^® charterholders, CIPM^® designation holders, and candidates for the CFA Program and the CIPM Program, are required to comply with, and attest to their compliance with, the provisions of the Code and Standards.  

Violations of the Code and Standards may result in disciplinary sanctions by CFA Institute, including revocation of membership, termination of candidacy in the CFA Program, and revocation of the right to use the CFA designation.  

How Were These Recommended Revisions Made?

For more than 40 years, CFA Institute has charged a volunteer committee of charterholders—the Standards of Practice Council (SPC) —with periodically reviewing the Code and Standards to ensure that it remains robust, relevant, and represents the vanguard of ethical conduct applicable to investment professionals.  

The SPC identifies ethical issues not covered by existing standards, and recommends revising or amending existing standards, or developing new standards, as required.  

The SPC, with support from CFA Institute staff, recommends to the CFA Institute Board of Governors changes and updates the committee believes are necessary to maintain the relevance and rigor of the Code and Standards, and to ensure the conduct requirements for our members and candidates remain the leading standards of ethical and professional conduct in the investment industry. CFA Institute published a Consultation Paper outlining a number of potential changes under consideration by the SPC earlier this year. The SPC revised its recommendations based on input received on the Consultation Paper.

What Might Change?

Potential revisions to the Code and Standards, as outlined in the Exposure Draft, include: 

• A new standard specifically requiring competency 
• Revising the Conflict of Interest standard to address avoiding conflicts of interest 
• Adding a standard requiring disclosures relating to the nature of services, fees, and costs
• Establishing an exception to the Confidentiality Standard relating to impaired clients
• Adding a general Transparency standard

What Comes Next

The SPC will review all comments from the 60-day consultation period ending on 6 March 2023.

The SPC will adjust its recommendations for changes to the Code and Standards based on the public comment to the Exposure Draft, as appropriate. The Board of Governors will then review and provide final approval of any proposed revisions to the Code and Standards because they directly affect membership obligations. Changes to the Code and Standards are expected to become effective 1 January 2024.