Lesson 4 of 5 · 14 min
Standards I–III: professionalism, markets, clients
Standards I to III ask you to be a competent and honest professional, to keep markets fair, and to put clients first while treating them fairly and suitably.
In short
- I Professionalism: know and follow the stricter of law and the Code; stay independent (no compromising gifts); no misrepresentation; no dishonest conduct; keep up your competence.
- II Integrity of Capital Markets: do not trade on or pass on material nonpublic information; do not manipulate prices or volume to mislead.
- III Duties to Clients: loyalty, prudence and care (clients before employer and self), fair dealing across clients, suitability, fair and complete performance presentation, and confidentiality with three exceptions.
- Suitability has two parts: an advisory relationship (know the client, judge suitability, total portfolio) and managing to a mandate (stay consistent with the mandate).
- Confidentiality exceptions: illegal activity by the client, disclosure required by law, or the client permits it.
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