CFA® L1 — Ethical & Professional Standards

About this course

The Code and Standards. Disproportionately exam-weighted relative to its content, and the reason candidates fail when they shouldn't.

1. 1

   Reading 1

   Code of Ethics — six principles

   • Acting with integrity, competence, diligence
   • Placing client interests first
2. 2

   Reading 2

   Standard I — Professionalism

   • Knowledge of the law
   • Independence, misrepresentation, misconduct
3. 3

   Reading 3

   Standard II — Markets

   • Material non-public information
   • Market manipulation
4. 4

   Reading 4

   Standard III — Duties to Clients

   • Loyalty, prudence, care
   • Fair dealing, suitability, performance presentation
5. 5

   Reading 5

   Standard IV — Duties to Employers

   • Loyalty
   • Additional compensation, supervisory responsibilities
6. 6

   Reading 6

   Standard V — Investment Analysis

   • Diligence and reasonable basis
   • Communication and record retention
7. 7

   Reading 7

   Standard VI — Conflicts

   • Disclosure of conflicts
   • Priority of transactions, referral fees
8. 8

   Reading 8

   GIPS introduction

   • Purpose and structure
   • Compliance basics