Ethics #1 - Code of Ethics and Standards of Professional Conduct

Question 1

State the 6 components to the Code of Ethics

Answer 1

LOS 1.a

Members of CFA Institute (including CFA charterholders) and candidates for the CFA designation (“Members and Candidates”) must:

1. Act with integrity, competence, diligence, and respect and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and other participants in the global capital markets.
2. Place the integrity of the investment profession and the interests of clients above their own personal interests.
3. Use reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities.
4. Practice and encourage others to practice in a professional and ethical manner that will reflect credit on themselves and the profession.
5. Promote the integrity and viability of the global capital markets for the ultimate benefit of society.
6. Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.

Question 2

What are the mnemonic devices for the “Code”?

Answer 2

LOS 1.a

1. DICER PECOCEP
2. P&C / me
3. RC, EIJ, AREA
4. Practice & Encourage E Credit <–> me & profession
5. Promote integrity & viability of global markets to help the world
6. Get better and help others too.