CFA Level 1 - Ethics
Reading 1
2020
ConquerFA
https://conquerfa.com
2020
5 Readings
1. Ethics & Trust in the Investment Profession
2. Code of Ethics and Standards of Professional Conduct
3. Guidance for Standards I–VII
4. Introduction to the Global Investment Performance Standards (GIPS)
5. Global Investment Performance Standards (GIPS)
https://conquerfa.com
2020
Learning Outcomes – Reading 1
a. Explain ethics;
b. Describe the role of a code of ethics in defining a profession;
c. Describe professions and how they establish trust;
d. Describe the need for high ethical standards in investment management;
e. Explain professionalism in investment management;
f. Identify challenges to ethical behavior;
g. Distinguish between ethical and legal standards;
h. Describe and apply a framework for ethical decision making.
https://conquerfa.com
2020
Learning Outcomes – Reading 2
a. Describe the structure of the CFA Institute Professional Conduct Program and the
process for the enforcement of the Code and Standards;
b. State the six components of the Code of Ethics and the seven Standards of
Professional Conduct;
c. Explain the ethical responsibilities required by the Code and Standards, including
the sub-sections of each Standard.
https://conquerfa.com
2020
Learning Outcomes – Reading 3
a. Demonstrate the application of the Code of Ethics and Standards of Professional
Conduct to situations involving issues of professional integrity;
b. Distinguish between conduct that conforms to the Code and Standards and
conduct that violates the Code and Standards;
c. Recommend practices and procedures designed to prevent violations of the Code
of Ethics and Standards of Professional Conduct.
https://conquerfa.com
2020
Learning Outcomes – Reading 4
a. Explain why the GIPS standards were created, what parties the GIPS standards
apply to, and who is served by the standards;
b. Explain the construction and purpose of composites in performance reporting;
c. Explain the requirements for verification.
https://conquerfa.com
2020
Learning Outcomes – Reading 5
a. Describe the key features of the GIPS standards and the fundamentals of
compliance;
b. Describe the scope of the GIPS standards with respect to an investment firm’s
definition and historical performance record;
c. Explain how the GIPS standards are implemented in countries with existing
standards for performance reporting and describe the appropriate response when
the GIPS standards and local regulations conflict;
d. Describe the nine major sections of the GIPS standards.
https://conquerfa.com
2020
