Guidance for Standard II: Integrity of Capital Markets

Free CFA Level I lesson in Ethical and Professional Standards. 18 min read, ~2,726 words.

Standard II(A) prohibits acting, or causing others to act, on material nonpublic information. Both prongs (material AND nonpublic) must be present for it to apply. Mosaic theory permits combining public information with non-material nonpublic items to reach a material conclusion. The conclusion is the analyst's work product, not insider information...