Code Of Ethics

### Section: Code of Ethics Estimated study time: 45 minutes Content: Exam weight (2026 curriculum): Ethical and Professional Standards — 15–20% of the CFA Level I exam (the single highest-weighted topic area). Source: CFA Institute Level I Exam page, fetched 2026-06-29. The 180-question, two-session exam allocates approximately 27–36 questions to ethics across both 135-minute sessions. The CFA Institute Code of Ethics forms the ethical foundation for all investment professionals who hold or pursue the CFA designation. The Code consists of six core principles that establish the baseline standards of professional conduct: acting with integrity, competence, diligence, and respect; placing client interests above personal interests; using reasonable care and exercising independent professional judgment; practicing in an ethical manner that reflects positively on the profession; promoting the integrity and viability of global capital markets; and maintaining and improving professional competence. These principles are not aspirational guidelines — they are binding obligations that CFA members and candidates must uphold at all times, regardless of local laws or employer instructions. The Code of Ethics exists because financial markets depend on trust. Investors delegate capital to professionals who possess information asymmetries and technical expertise the average investor lacks. Without enforceable ethical standards, this principal-agent relationship breaks down, leading to market dysfunction, misallocation of capital, and erosion of public confidence. The CFA Institute developed the Code to address this trust gap, establishing a globally recognized baseline that transcends jurisdiction-specific regulations. When a CFA charterholder operates in a country with weak investor protection laws, the Code requires them to uphold CFA standards regardless — the more protective…