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CFA Institute Bylaws, Codes, and Standards

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CFA Institute Bylaws, Codes, and Standards
All CFA Institute members and candidates are required to comply with the Code and Standards
The CFA Institute Bylaws

Basic structure for enforcing the Code and Standards

primary principles
Based on two

Rules of Procedure

Fair process to member and candidate
Confidentiality of proceedings

Maintains oversight and responsibility
The CFA Institute
Board of Governors

Structure of the CFA
Institute Professional
Conduct Program

Professional Conduct program (PCP)
The CFA Designated
Officer

Through the Disciplinary
Review Committee (DRC)

Is responsible for the enforcement of the
Code and Standards

Directs professional conduct staff

Conducts professional conduct inquiries

Selfdisclosure
An inquiry can be prompted by several circumstances

a.

Written complaints
Evidence of misconduct
Report by a CFA exam proctor

The Professional
Conduct staff conducts an investigation that may include

Requesting a written explanation from the member or candidate
The member or candidate
Interviewing

Complaining parties
Third parties

Collecting documents and records in support of its investigation

1. Code Of Ethics And
Standards Of
Professional Conduct

Process for the enforcement of the Code and Standards

When an inquiry is initiated Conclude the inquiry with no disciplinary sanction
Upon reviewing the material obtained during the investigation, the
Designated Officer may

Issue a cautionary letter

Continue proceedings to discipline the member or candidate

Act with integrity, competence, diligence, respect and in an ethical manner
Integrity of investment profession & interest of clients above personal interest

Six components of the Code of Ethics

Care & judgment
Practice ethics & encourage others to practice
Integrity & rules of capital markets
Professional competence

b,c.

Professionalism
Integrity of Capital markets
Duties of Clients

Seven Standards of
Professional Conduct

Duties to Employers
Investment analysis, Recommendations & Actions
Conflict of interest
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