Misconduct
Wrongdoing in a professional role. Under Standard I(D), conduct involving dishonesty, fraud or deceit, or any act reflecting adversely on professional reputation, integrity or competence, including in private life.
Where you will meet it
Misconduct appears in 8 learning outcomes on the CFA syllabus. A few of them:
- Use a structured framework to make ethical decisions
“Its value is in the second step, because misconduct usually arises not from a decision to do wrong but from an environment that makes the wrong thing feel routine.”
- Contrast research on the sell side with the buy side and explain what activist short sellers do
“Their reports can expose genuine misconduct, but because they profit from a price fall, their claims need independent checking.”
- Set out the vehicles for investing in digital assets and the risks they carry
“Leaving assets on a centralised exchange instead exposes the investor to the exchange's failure or misconduct.”
- Explain what the Code and Standards expect of members ethically, covering every standard and its subsections
“Professionalism covers law, independence, misrepresentation, misconduct and competence, and Integrity of Capital Markets covers inside information and manipulation.”
See also
Practise it
Practise misconduct until it is automatic: questions that explain every wrong option.
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