The seven Standards of Professional Conduct at a glance

What are the Standards, and how do they relate to the Code?

The Code gives six principles. The Standards of Professional Conduct turn them into specific duties, arranged under seven headings with 23 sub-sections in all. Read them together: the Code says what a professional stands for, the Standards say what to do.

Memorize

The map: seven headings, 23 sub-sections

The headings, in the order the curriculum uses:

1. Professionalism (Standard I): the personal conduct of a professional.
2. Integrity of Capital Markets (II): keep markets fair.
3. Duties to Clients (III): what you owe the people you serve.
4. Duties to Employers (IV): what you owe the firm you work for.
5. Investment Analysis, Recommendations, and Actions (V): how you do and communicate your work.
6. Conflicts of Interest (VI): keeping your own interests out of the way.
7. Responsibilities as a CFA Institute Member or CFA Candidate (VII): protecting the program and the designation.

Standards of Professional Conduct7 Standards, 23 sub-sections

• I Professionalism Memorize five sub-sections
  • A Knowledge of the Law Memorize follow the stricter of law and Code
  • B Independence and Objectivity Memorize nothing that compromises judgment
  • C Misrepresentation Memorize no false or misleading statements
  • D Misconduct Memorize no dishonesty, fraud or deceit
  • E Competence Memorize added in 2023
• II Integrity of Capital Markets Memorize two sub-sections
  • A Material Nonpublic Information Memorize do not act or cause others to act on it
  • B Market Manipulation Memorize no distorting prices or volume
• III Duties to Clients Memorize five sub-sections
  • A Loyalty, Prudence, and Care Memorize clients first
  • B Fair Dealing Memorize treat clients fairly
  • C Suitability Memorize fit the client or the mandate
  • D Performance Presentation Memorize fair, accurate, complete
  • E Preservation of Confidentiality Memorize three exceptions
• IV Duties to Employers Memorize three sub-sections
  • A Loyalty Memorize act for the employer's benefit
  • B Additional Compensation Arrangements Memorize written consent
  • C Responsibilities of Supervisors Memorize reasonable efforts to ensure compliance
• V Investment Analysis, Recommendations, and Actions Memorize three sub-sections
  • A Diligence and Reasonable Basis Memorize thorough work
  • B Communication with Clients and Prospective Clients Memorize services and costs now disclosed
  • C Record Retention Memorize keep supporting records
• VI Conflicts of Interest Memorize three sub-sections
  • A Avoid or Disclose Conflicts Memorize renamed in 2023
  • B Priority of Transactions Memorize clients and employer before you
  • C Referral Fees Memorize disclose pay given or received
• VII Responsibilities as a CFA Institute Member or CFA Candidate Memorize two sub-sections
  • A Conduct as Participants in CFA Institute Programs Memorize protect the programs' integrity
  • B Reference to CFA Institute, the CFA Designation, and the CFA Program Memorize no exaggeration

Standard	Sub-section	In one line
I Professionalism	(A) Knowledge of the Law	Know and follow the law and the Code; follow the stricter; dissociate from violations
	(B) Independence and Objectivity	Do not give or take anything that could compromise judgment
	(C) Misrepresentation	No knowing false or misleading statements, including plagiarism
	(D) Misconduct	No dishonesty, fraud or deceit, nor acts that reflect badly on professional integrity
	(E) Competence	Act with and maintain the competence your role needs (added in 2023)
II Integrity of Capital Markets	(A) Material Nonpublic Information	Do not act, or cause others to act, on it
	(B) Market Manipulation	Do not distort prices or inflate volume to mislead
III Duties to Clients	(A) Loyalty, Prudence, and Care	Clients’ interests first; act prudently
	(B) Fair Dealing	Treat all clients fairly in recommendations and actions
	(C) Suitability	Know the client, judge suitability in the whole portfolio, or follow the fund’s mandate
	(D) Performance Presentation	Fair, accurate, complete performance information
	(E) Preservation of Confidentiality	Keep client information private, with three exceptions
IV Duties to Employers	(A) Loyalty	Act for your employer’s benefit; do not take its clients, files or secrets
	(B) Additional Compensation Arrangements	Get written consent from all parties for outside pay that could conflict
	(C) Responsibilities of Supervisors	Make reasonable efforts to ensure those you supervise comply
V Investment Analysis, Recommendations, and Actions	(A) Diligence and Reasonable Basis	Be thorough; have a reasonable basis
	(B) Communication with Clients and Prospective Clients	Disclose services and costs and the process and risks; separate fact from opinion
	(C) Record Retention	Keep records that support your work
VI Conflicts of Interest	(A) Avoid or Disclose Conflicts	Avoid conflicts, or disclose them prominently in plain language
	(B) Priority of Transactions	Clients and employer trade before you
	(C) Referral Fees	Disclose referral pay received or given
VII Responsibilities as a CFA Institute Member or CFA Candidate	(A) Conduct as Participants in CFA Institute Programs	Do not compromise the integrity of CFA Institute or its programs
	(B) Reference to CFA Institute, the CFA Designation, and the CFA Program	Do not misrepresent or exaggerate what membership, the designation or candidacy means

Exam tip Know the seven headings cold. Once a question names the heading, the sub-section usually follows from the behavior described.

What changed in the 2023 revisions ?

Memorize

The Board of Governors approved three changes in 2023, one new sub-section and two revisions:

• New I(E) Competence. Members and candidates must act with, and keep up, the competence their role requires. The skills needed differ by job and grow as roles expand. The Standard does not mandate any specific continuing-education program.
• V(B) expanded. When communicating with clients and prospective clients, members and candidates must also disclose the nature of the services provided and the costs to the client of those services.
• VI(A) renamed and revised. From “Disclosure of Conflicts” to “Avoid or Disclose Conflicts”. Avoiding a conflict is preferred. Where avoiding is not reasonable, clear and complete disclosure is still required, and it must be prominent and in plain language.

Study material written before the revision does not include these, so check which wording you are using.

Go deeper A mnemonic for the seven headings

The initials are P, I, C, E, I, C, R: Professionalism, Integrity of markets, Clients, Employers, Investments, Conflicts, Responsibilities. Build your own sentence from them, or use “Prove Integrity: Clients, Employers, Investments, Conflicts, Responsibility”. A phrase you invented sticks better than one you read, so spend two minutes making yours rather than memorizing ours.

Go deeper Why competence moved from the Code into a Standard

Competence was already a Code principle, but the Code states ideals, and the Standards are what discipline is built on. Writing I(E) makes the duty explicit and enforceable: someone who takes on work beyond their skills, or lets their knowledge go stale in a changing role, can now be held to a specific Standard rather than a general principle.