Deep Dive: CFA® Level I Prep 2026

Standard VI addresses the importance of identifying and managing conflicts of interest that could compromise objectivity. It requires full and fair disclosure of any potential conflicts—especially those involving ownership, compensation, or referral arrangements—so that clients and employers can make informed decisions with confidence.

Standard V focuses on maintaining the integrity and quality of investment research and decisions. It requires professionals to base analyses on thorough due diligence, clearly communicate investment recommendations and risks, and retain records that support the investment process. The standard ensures transparency and accountability in all investment actions.

Standard IV outlines the responsibilities investment professionals have toward their employers. It covers the duty of loyalty, maintaining competence, and acting with integrity while on the job. It also addresses proper conduct when leaving a firm and the importance of not misusing employer resources or confidential information.

Standard III emphasizes the fiduciary responsibility investment professionals owe to their clients. It outlines duties such as loyalty, prudence, and care; ensuring fair dealing; preserving confidentiality; and providing suitable, objective advice. This standard reinforces that clients’ interests must always come first.

Standard II protects the fairness and transparency of global capital markets. It focuses on two key areas: Material Nonpublic Information—ensuring analysts don’t misuse inside information—and Market Manipulation—prohibiting practices that distort prices or trading volume. The goal: promote investor confidence by keeping markets level and trustworthy.

Standard I covers the fundamental duty of acting with integrity and professionalism. It sets expectations around knowledge of the law, independence and objectivity, misrepresentation, and misconduct. You'll learn how to navigate conflicts, avoid biased research, and maintain trust in your professional interactions—especially when legal and ethical standards diverge.

This module introduces the CFA Institute Code of Ethics and the Standards of Professional Conduct, the backbone of ethical investment practice. You'll explore the six core ethical responsibilities and seven standards that guide duties to clients, employers, markets, and the profession. Each standard is explained with practical examples to help you apply them in real-world scenarios.

This opening module explains why ethics and trust are foundational to functioning capital markets. It explores how ethical conduct enhances investor confidence, defines professionalism, and reduces systemic risk. You'll also learn to distinguish ethical standards from legal ones, and understand the consequences when fiduciary duty is breached. This sets the tone for the rest of the Ethics curriculum.

The final chapter frames risk management as an enterprise-wide process. It describes risk governance, risk tolerance and budgeting, distinguishes financial from non-financial risks, and evaluates tools for measuring, preventing, accepting, transferring, or shifting risk—providing a comprehensive toolkit for modern risk managers. :contentReference[oaicite:5]{index=5}

Here the curriculum turns to behavioral finance, categorizing cognitive errors and emotional biases that can distort investor decisions. It illustrates common biases (e.g., overconfidence, loss aversion), links them to market anomalies such as momentum and bubbles, and discusses how awareness of these tendencies can improve wealth-management advice. :contentReference[oaicite:4]{index=4}