Cfa Level 1

STUDY SESSION

Ethical and Professional Standards

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The readings in this study session present a framework for ethical conduct in the

investment profession by focusing on the CFA Institute Code of Ethics and Standards of Professional Conduct as well as the Global Investment Performance Standards (GIPS®). The principles and guidance presented in the CFA Institute Standards of Practice Handbook (Handbook) form the basis for the CFA Institute self-regulatory program to maintain the highest professional standards among investment practitioners. “Guidance” in the Handbook addresses the practical application of the Code of Ethics and Standards of Professional Conduct. The guidance expands upon the purpose and scope of each standard, presents recommended procedures for compliance, and provides examples of the standard in practice. The Global Investment Performance Standards (GIPS) facilitate efficient comparison of investment performance across investment managers and country borders by prescribing methodology and standards that are consistent with a clear and honest presentation of returns. Having a global standard for reporting investment performance minimizes the potential for ambiguous or misleading presentations.

READING ASSIGNMENTS

Reading 1 Reading 2 Reading 3 Reading 4 Code of Ethics and Standards of Professional Conduct Standards of Practice Handbook, Tenth Edition Guidance for Standards I–VII Standards of Practice Handbook, Tenth Edition Introduction to the Global Investment Performance Standards (GIPS) Global Investment Performance Standards (GIPS)

2013 Level I CFA Program Curriculum © CFA Institute.

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Study Session 1

LEARNING OUTCOMES

READING 1. CODE OF ETHICS AND STANDARDS OF PROFESSIONAL CONDUCT The candidate should be able to: a b c describe the structure of the CFA Institute Professional Conduct Program and the process for the enforcement of the Code and Standards; state the six components of the Code of Ethics and the seven...