How to Effectively Understand Ethical and Professional Standards


These days, more and more people are interested in gaining financial knowledge and getting promotion in the financial world. As a result, CFA title has become one of the best tools that can support their desire in the long run. Nevertheless, you may meet a variety of barriers when starting CFA Exam so that I am going to give you useful advice to solve your problems. In particular, I know that Ethics and Professional Standards is the first subject that you will have difficulty since I used to have the same concern before. Hence, please spend a few minutes reading my article, and you can have the useful information that can apply to your upcoming CFA Exam.

ethical and professional standards.jpg

Overview of Ethics and Professional Standards

As a CFA Charter Holder, I have to say that Ethics and Professional Standards is one of the subjects which accounts for the great proportion of marks allocated in your CFA Exam. As a result, you have to pay more attention to this subject as well as identify the best method to fully understand it.

By doing this, you can easily overcome your CFA Exam within a short period, and then, you can pursue your future career successfully. Also, I want to share that if you want to have the best outcome for Ethical and Professional Standards, you have to do as many practice tests as possible.

Particularly, you can focus on the questions in the Curriculum as well as the CFA Candidate Resources since they usually stick to the actual exam format. By doing these questions at least twice, you can have the perfect preparation for this subject. I highly recommend that you should not focus on learning the theories by heart because Ethics is mainly about the practical cases.

Thus, the more exercises you do, the more you will become familiar with all of the tricks that can appear in your real exam. To help all of the current CFA Candidates who are struggling with this matter, I am going to share my previous experience about this subject regarding all three levels right now so that you can find out the most suitable way for yourself.

CFA Level 1

According to my memory, Ethics accounts for 15 percent of your total mark in CFA Level 1. Moreover, in case you fail your exam, but you are listed in the band ten, your Ethics result is considered as one of the most important factors which can save you in the end. Therefore, in my opinion, Ethics is definitely one of the most significant subjects in CFA Curriculum.

Based on my experience, when you get started with Ethics in level 1, you will find it quite difficult since this subject is ambiguous and abstract. The theory will not tell you exactly what to do and what not to. I am sure that you can face a number of questions that you may not have any clues to answer eventually. Furthermore, you cannot remember whether you have read this knowledge or not.

I used to deal with all of these things in the past so that I can understand your current concerns. However, you do not need to worry a lot since I am going to tell you some tips that can help you go through this subject smoothly.

In particular, there are some principles that you should remember clearly associated with the equality. The purpose of the Codes of Ethics is to encourage the equality, and if you violate the equality by chance, you have to try your best to recover this state.

As a result, whenever you are confused about any questions, you need to think of the answer that can guarantee the equality for all of the related parties. More specifically, the order of priority that you always have to remember is the market integrity, the client of your company, the company and finally yourself.

For instance, if there is a chance that can bring more money to your customers, but it will do harm to the other people in the market, you must not do this act anymore. Another example is that when there is a conflict between your customers and your company, you have to act for your customers’ interest firstly.

CFA Level 2

When it comes to CFA Level 2, the curriculum of Ethical and Professional Standards will not have much difference when compared with level 1. The only difference that you need to notice is the new type of questions so that you have to get familiar with this new point.

By practicing many times with the mock exams, you can know how to effectively identify the key point in the test which includes a number of words without wasting too much time. During your practice, you need to write down your mistakes, which will remind you not to commit them again in the future.

CFA Level 3

As the last CFA Exam that you are going to take, I hope that you can have the best preparation for Ethical and Professional Standards. Hence, you should know that this subject accounts for 10 to 15 percent within your entire exam at level 3.

The similar point to level 1 and 2 is that you can meet some topics again such as The Codes and Standard together with violation recognition. Nevertheless, instead of asking about individual solutions, the focus of the level 3 questions will move to the organization issues including risk management and portfolio management.

Besides, you can approach the specific unique reading called as Asset Manager Code that you may not get accustomed to. As a consequence, you can see all of the main shifts that can take place when you enter the CFA Level 3 curriculum.

After going through all three levels a few years ago, I have to say that everything will become easier if you repeat them in your head day by day. Your effort combined with the extra learning materials from CFA will absolutely give your brain the best understanding, and then, you will be willing to do your actual CFA Exam.


In summary, I wish that all of my information in my article related to Ethical and Professional Standards in CFA Exam will encourage your spirit for learning. However, in case you have any confusion and queries, please feel free to keep in touch with me anytime.

Leave a Reply

Your email address will not be published. Required fields are marked *