Page 12 - FINAL CFA SLIDES JUNE 2019 DAY 1

Code of Ethics and Standards of Professional Conduct/
Guidance for Standards I - Vii

Study Session 1 (Combine LOS 2/3)

LOS 2.a: Describe the structure of the CFA Institute Professional Conduct Program and the process for the
enforcement of the Code and Standards.

Fairness is key – The Disciplinary Review Committee of the Board of Governors has overall responsibility for enforcement:

Key Mechanisms (impacts members and candidates):
• Self-disclosure of involvement in civil litigation, criminal investigation, or any written complaint.
• Written complaints are received by the Professional Conduct staff.
• Evidence of misconduct received through public sources, such as a media article or broadcast.
• A report by a CFA exam proctor of a possible violation during the examination.
• Analysis of exam materials and monitoring of social media by CFA Institute.

Professional Conduct staff may investigate by: (1) interview you, complainant or 3 party parties, and/or any collect records.
rd

Possible decisions:
(1) no disciplinary sanctions are appropriate,
(2) issue a cautionary letter, or
(3) Sanction you – you accept or reject same; if reject the sanction, it goes to disciplinary review panel for a hearing (could ep up with
condemnation by peers or suspension).