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CFA Level I · CFA Level I Exam · Code of Ethics and Standards of Professional Conduct

Under the 2023 revisions reflected in the 12th edition of the Standards of Practice Handbook, Standard VI(A) is titled "Avoid or Disclose Conflicts." Compared with the earlier version of the standard, the most significant change is that members and candidates are now required to:

The revised Standard VI(A) requires members and candidates to either avoid conflicts of interest or disclose them. Earlier versions did not mention avoidance at all. The standard does not demand avoidance of every conflict, and it does not require annual reporting to CFA Institute.

  1. Aavoid conflicts of interest or disclose themCorrect
  2. Bdisclose all conflicts to CFA Institute annually
  3. Cavoid every conflict of interest without exception

Explanation

The 2023 revision renamed Standard VI(A) and requires members and candidates to either avoid conflicts of interest or disclose them. Previously the standard did not mention avoidance. The option requiring avoidance of every conflict goes too far, because disclosure remains an acceptable alternative.

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