Code Of Ethics

### Section: Code of Ethics and Professional Standards — Application Estimated study time: 60 minutes Content: Exam weight (2026 curriculum): Ethical and Professional Standards — 10–15% of the CFA Level II exam. Source: CFA Institute Level II Exam page, fetched 2026-06-29. The Level II exam consists of 22 item sets (vignettes + multiple-choice questions); 88 questions total across two 132-minute sessions; 20 item sets scored and 2 trialed. Ethics vignettes appear throughout both sessions and require application of the Standards to multi-party fact patterns — not definitional recall. At CFA Level 2, the Code of Ethics is tested not as isolated definitions but through complex vignette scenarios requiring candidates to identify violations, determine appropriate remediation, and weigh competing duties. The six components of the Code — acting with integrity, competence, diligence, and respect; placing client interests before employer and personal interests; practicing and encouraging others to practice in an ethical manner; promoting the integrity of capital markets; maintaining and improving professional competence; and discharging fiduciary duty — must be applied to ambiguous fact patterns where multiple obligations conflict. A key skill is recognizing when a seemingly reasonable business action crosses an ethical line. Conflicts of interest are among the most frequently tested scenarios at Level 2. CFA charterholders may face pressure from employers to act in ways that benefit the firm at the expense of clients. The Code requires members to act in a manner that reflects credit on themselves and the profession, and to place client interests above their own and their employer's interests. When reading vignettes, candidates must…