Summary

The Chartered Financial Analyst (CFA) Institute code describes ethical standards and a code of conduct for people who provide investment advice to clients. The code of ethics describes a number of general ethical principles, including integrity, reasonable care and exercise of independent professional judgment, professional competence, and to "promote the integrity and viability of the global capital markets for the ultimate benefit of society" (CFA, 2019).
The code of ethics is accompanied with a much more detailed standard of professional conduct. There are seven sets of standards, ranging from professionalism to duties to clients and employers to conduct regarding conflicts of interest. The set of standards concerning the integrity of capital markets includes prohibitions against insider trading (specifically, members that "possess material nonpublic information that could affect the value of an investment must not act or cause others to act on the information" (Ibid)) and against "practices that distort prices or artificially inflate trading volume with the intent to mislead market participants."

Content

The Code of Ethics

Members of CFA Institute... must:

Act with integrity, competence, diligence, respect and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and other participants in the global capital markets.
Place the integrity of the investment profession and the interests of clients above their own personal interests.
Use reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities.
Practice and encourage others to practice in a professional and ethical manner that will reflect credit on themselves and the profession.
Promote the integrity and viability of the global capital markets for the ultimate benefit of society.
Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.

Standards of Professional Conduct

Professionalism : knowledge of the law; independence and objectivity; no misrepresentation, no misconduct.
Integrity of Capital Markets: no insider trading, no market manipulation.
Duties to Clients: loyalty, prudence, and care; deal fairly and objectively; judge the suitability of investments in the context of the client's total portfolio; fair, accurate, and complete performance presentation; preservation of confidentiality.
Duties to Employers: loyalty, no conflict of interest with their employer's interest; as supervisors, ensure compliance with applicable laws, rules, regulations, and the Code and Standards.
Investment analysis, recommendations, and actions: due diligence, disclose analysis process, potential risks, and fact vs. opinion; develop and maintain appropriate records.
Conflicts of interest: disclose conflicts of interest; transactions for clients and employers must have priority; disclose benefit received from or paid to others for the recommendation of products or services.

Responsibilities as CFA member or candidate: don't compromise the reputation or integrity of CFA; do not misrepresent or exaggerate the meaning of CFA membership.

Force:yes