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ETHICAL AND PROFESSIONAL STANDARDS AND QUANTITATIVE METHODS
CFA® Program Curriculum 2020 • LEVEL I • VOLUME 1
© CFA Institute. For candidate use only. Not for distribution.
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© CFA Institute. For candidate use only. Not for distribution.
CONTENTS How to Use the CFA Program Curriculum Background on the CBOK Organization of the Curriculum Features of the Curriculum Designing Your Personal Study Program Feedback
ix ix x x xii xiii
Ethical and Professional Standards Study Session 1
Ethical and Professional Standards
Reading 1
Ethics and Trust in the Investment Profession Introduction Ethics Ethics and Professionalism How Professions Establish Trust Professions Are Evolving Professionalism in Investment Management Trust in Investment Management CFA Institute as an Investment Management Professional Body Challenges to Ethical Conduct Ethical vs. Legal Standards Ethical Decision-Making Frameworks The Framework for Ethical Decision-Making Applying the Framework Conclusion Summary Practice Problems Solutions
5 5 7 9 9 11 12 12 13 15 17 19 20 22 27 28 30 32
Reading 2
Code of Ethics and Standards of Professional Conduct Preface Evolution of the CFA Institute Code of Ethics and Standards of Professional Conduct Standards of Practice Handbook Summary of Changes in the Eleventh Edition CFA Institute Professional Conduct Program Adoption of the Code and Standards Acknowledgments Ethics and the Investment Industry Why Ethics Matters CFA Institute Code of Ethics and Standards of Professional Conduct Preamble The Code of Ethics Standards of Professional Conduct
35 35
indicates an optional segment
3
36 36 37 39 40 40 41 41 45 45 46 46
ii
© CFA Institute. For candidate use only. Not for distribution.
Practice Problems Solutions Reading 3
Guidance for Standards I–VII Standard I: Professionalism Standard I(A) Knowledge of the Law Guidance Recommended Procedures for Compliance Application of the Standard Standard I(B) Independence and Objectivity Guidance Recommended Procedures for Compliance Application of the Standard Standard I(C) Mis