Guidance for Standard III: Duties to Clients
Free CFA Level I lesson in Ethical and Professional Standards. 18 min read, ~2,701 words.
Standard III has five sub-standards: Loyalty/Prudence/Care, Fair Dealing, Suitability, Performance Presentation, Preservation of Confidentiality. Client interests come before employer and personal interests; advisory duty creates fiduciary-like obligations. "Fair" dealing means no preferential disadvantage, not identical treatment; pro rata at average execution price is the safe default. Suitability requires a written...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- ethics and trust
- code of ethics and standards
- standard I professionalism
- standard II integrity of capital markets
- standard III duties to clients
- standard IV duties to employers
- standard V investment analysis
- standard VI conflicts of interest
- standard VII responsibilities as member or candidate
- application of code and standards
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