Financial advisors and analysts are bound by strict laws. And beyond those laws, they’re expected to behave in an ethical manner.
On top of all that, the Chartered Financial Analyst Institute (CFAI) requires its members to abide by its own Code of Ethics & Standards of Professional Conduct.
Indeed, the gruelling CFA exams require test-takers to become intimately familiar with these guidelines. They are tested heavily alongside of topics like accounting, asset valuation, and portfolio management.
Once an analyst passes the CFAI’s three exams and becomes a CFA charterholder, they must stick to these codes and standards or risk disciplinary actions that could eventually lead to the revocation of their CFA charters.
The newest issue of the CFA Institute Magazine has a section highlighting disciplinary notices (see below). They include the real world cases of analysts getting reprimanded for reportedly violating the CFAI’s codes.
Anyone taking the CFA exams will recognise these notices as read exactly like test questions.
Anyone who is already a CFA charterholder should read these notices and a remember that the CFAI is watching you.
CFA Institute Magazine