GARP Code of Conduct: formula sheet

Key formulas

Core principles to recall

Professional responsibility + Integrity + Honesty + Fairness + Promoting ethical practice

Use this as a checklist when reading any scenario. The exact wording of GARP's published code can differ, so check the current Study Guide.

Decision test

Accurate and complete? Fair to all parties? Within my competence? Would I be comfortable if it were public?

This is a study aid, not an official GARP formula. It helps you screen answer options quickly.

Conflict of interest rule

Identify → Disclose → Avoid or manage

Applies when your own or a related party's interest could compromise objectivity or independence. Disclosure to affected parties is the minimum response, and avoiding the conflict is better where possible.

Confidentiality rule

Non-public information of employer or client → do not misuse or share

Exceptions: disclosure required by law or regulation, or authorised by the employer or client. Never use it for personal gain.

Disclosure test

Would a reasonable observer doubt my objectivity? If yes → disclose

A memory aid for the idea of apparent conflicts. It is not a quotation from the Code.

Confidentiality exception test

Legal requirement OR permission from the owner of the information → disclosure allowed

Curiosity, a colleague's request or personal convenience are not valid reasons.

Duty memory aid

Law + Judgment + Truth + Exam rules (+ Conflicts of interest + Confidentiality)

A study aid, not the code's own structure. Map each scenario to one of these duties before reading the options.

Stricter requirement

If applicable law and the Code differ, follow the stricter requirement

Check the current Code wording for how it treats this. Never use a weaker rule as an excuse.

Misrepresentation test

Statement is false or misleading → likely breach

A knowingly false statement is the clearest case. A statement that omits a key fact can also mislead. Treat this as a general principle and check the current Code wording.

Exam integrity rule

Candidate must not share, copy or disclose exam content or use unauthorised help

Applies during and after the exam, and to any exam material.

Violations and cooperation

The Code addresses violations and cooperation with GARP

Check GARP's current Code for its exact provision. Do not rely on memorised detail.

Quick revision

• The Code applies to FRM candidates and certificate holders.
• Integrity and honesty come first in every scenario.
• Disclose conflicts of interest rather than hiding them.
• Do not use confidential information for personal gain or share it without proper authority.
• Do not misrepresent your qualifications, work or the exam.
• Comply with applicable laws and regulations, and with the Code.
• Use independent, objective judgement; do not let pressure change your analysis.
• Do not cheat on or compromise the integrity of GARP exams.
• Be accurate and fair when reporting risk and results; do not mislead.
• Maintain and improve your professional competence.
• When unsure, pick the most transparent and cautious action.
• Confirm details against the current GARP Study Guide.

Common mistakes

• Thinking the Code applies only to certified FRM holders. Fix: Remember it covers GARP members and FRM candidates, including those who have only registered or sat the exam.
• Treating the Code as a replacement for law. Fix: Treat them as working together. Follow the stricter standard when they differ.
• Choosing the answer that is good for the employer's profit. Fix: Ethical duties override profit. If an option benefits the firm by misleading someone, it is wrong.
• Picking an option to quietly ignore a minor breach. Fix: Promoting ethical practice means not turning a blind eye. Prefer the option that addresses the issue properly.
• Treating conflict of interest and confidentiality as one rule Fix: Label the issue first. Judgment compromised is a conflict. Information misused or shared is confidentiality. Some scenarios involve both.
• Thinking a conflict is acceptable if it does not change your actual decision Fix: The test is whether the interest could compromise objectivity, or reasonably appear to. Disclose anyway.
• Treating local law as the full standard Fix: Remember that legal compliance does not automatically make conduct ethical. Where applicable law and the Code differ, follow the stricter requirement, and check the current Code wording.
• Thinking intent is always needed for misrepresentation Fix: Misleading statements can also be a problem under the general principle of honesty, even when not deliberate. Check the current Code wording.

Exam tips

• Questions are scenario-based and test judgment, so read for who is involved before reading the options.
• Learn the three broad principles and be able to sort any fact pattern into one of them.
• When options differ in strictness, the stricter and more transparent one is usually the intended answer.
• Do not spend long here. These are quick marks if your framework is clear.
• Remember scope: members and candidates, not only certificate holders.
• Read the last line first so you know whether the question asks for a breach, a principle or the best action.
• Prefer answers that are transparent and use internal escalation before external action.
• Be wary of absolute words like 'never' or 'always' in options unless the principle really is absolute.