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ETHICAL AND PROFESSIONAL STANDARDS, QUANTITATIVE METHODS, AND ECONOMICS
CFA® Program Curriculum 2020 • LEVEL II • 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
3
Reading 1
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
5 5 6 6 7 9 10 10 11 11 15 15 15 16
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) Misrepresentation Guidance Recommended Procedures for Compliance Application of the Standard Standard I(D) Misconduct Guidance Recommended Procedures for Compliance Application of the Standard
21 21 21 21 26 27 30 30 35 36 43 43 46 48 53 53 54 54
Reading 2
indicates an optional segment
ii
© CFA Institute. For candidate use only. Not for distribution.
Contents
Standard II: Integrity of Capital Markets Standard II(A) Material Nonpublic Information Guidance Recommended Procedures for Compliance Application of the Standard Standard II(B) Market Manipulation Guidance Application of the Standard Standard III: Duties to Clients Standard III(A) Loyalty, Prudence, and Care Guidance Recommende