This study session provides a framework for ethical conduct in the investment profession. 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. A clear understanding of the CFA Institute Code and Standards (both found in the Handbook) should allow practitioners to identify and appropriately resolve ethical conflicts, leading to a reputation for integrity that benefits both the individual and the profession. Material under “Guidance” in the Handbook addresses the practical application of the Code and Standards. The guidance for each standard reviews its purpose and scope, presents recommended procedures for compliance, and provides examples of the standard in practice.

This study session begins with the role played by ethics and professionalism in the investment industry. A framework to support ethical decision-making is provided to help guide behavior. The reading emphasizes the importance that a profession’s code of ethics and standards of behavior have in generating the trust with its clients and society as a whole. The Asset Manager