Ethical and Professional Standards: CFA® Level III

It is 10–15% of the 2027 Level III exam. 22 learning outcomes across 10 learning modules.

28 practice questions and 0 formula cards on this topic in the app.

Code of Ethics and Standards of Professional Conduct

• Outline the make-up of CFA Institute's Professional Conduct Program and the steps by which it investigates and disciplines breaches of the Code and Standards
• Explain the duties the Code and Standards impose on members and candidates, covering every subsection of all seven Standards

Guidance for Standard I: Professionalism

• Show firm command of the Code and Standards by applying them to professional integrity cases under Standard I, Professionalism
• Propose practices and procedures that head off breaches of the Code and Standards under Standard I, Professionalism

Guidance for Standard II: Integrity of Capital Markets

• Show firm command of the Code and Standards by applying them to professional integrity cases under Standard II, Integrity of Capital Markets
• Propose practices and procedures that head off breaches of the Code and Standards under Standard II, Integrity of Capital Markets

Guidance for Standard III: Duties to Clients

• Show firm command of the Code and Standards by applying them to professional integrity cases under Standard III, Duties to Clients
• Propose practices and procedures that head off breaches of the Code and Standards under Standard III, Duties to Clients

Guidance for Standard IV: Duties to Employers

• Show firm command of the Code and Standards by applying them to professional integrity cases under Standard IV, Duties to Employers
• Propose practices and procedures that head off breaches of the Code and Standards under Standard IV, Duties to Employers

Guidance for Standard V: Investment Analysis, Recommendations, and Actions

• Show firm command of the Code and Standards by applying them to professional integrity cases under Standard V, Investment Analysis, Recommendations, and Actions
• Propose practices and procedures that head off breaches of the Code and Standards under Standard V, Investment Analysis, Recommendations, and Actions

Guidance for Standard VI: Conflicts of Interest

• Show firm command of the Code and Standards by applying them to professional integrity cases under Standard VI, Conflicts of Interest
• Propose practices and procedures that head off breaches of the Code and Standards under Standard VI, Conflicts of Interest

Guidance for Standard VII: Responsibilities as a CFA Institute Member or CFA Candidate

• Show firm command of the Code and Standards by applying them to professional integrity cases under Standard VII, Responsibilities as a CFA Institute Member or CFA Candidate
• Propose practices and procedures that head off breaches of the Code and Standards under Standard VII, Responsibilities as a Member or Candidate

Application of the Code and Standards: Level III

• Judge whether given practices, policies and conduct measure up to CFA Institute's Code and Standards
• Give the reasons a practice, policy or action complies with, or breaches, CFA Institute's Code and Standards

Asset Manager Code of Professional Conduct

• Explain what the Asset Manager Code sets out to achieve and what a firm gains by adopting it
• Set out the ethical and professional obligations flowing from each of the six General Principles in the Asset Manager Code
• Judge if the practices and procedures of an asset management firm are in line with the Asset Manager Code
• Propose firm policies and procedures that stop breaches of the Asset Manager Code from occurring