Ethical and Professional Standards for CFA Level II

Scenario judgment, research conduct, and conflict analysis for the Level II ethics topic area.

Level II ethics usually feels harder than Level I because the vignette introduces competing duties, research-process details, and disclosure questions that all look relevant at once. The point is not to memorize the standard name faster. The point is to identify the actual duty breached or satisfied under a more realistic fact pattern.

That is why this chapter is grouped into a few substantive lessons instead of one page per reading or one page per substandard. The official curriculum still defines the coverage boundary, but the public structure is organized around how Level II candidates actually solve ethics cases online: frame the duty problem, work through the main Standards I-VII families in realistic scenarios, then evaluate whether firm policies and conduct conform or violate.

What This Topic Area Covers

  • Code of Ethics responsibilities and the seven Standards as a vignette-reading framework
  • Guidance for Standards I-VII across professionalism, markets, clients, employers, analysis, conflicts, and CFA Program conduct
  • prevention procedures, supervision, and policy design meant to reduce violations
  • Level II application cases that evaluate both conduct and control environments

Current Lesson Path

LessonOfficial reading coverage boundaryWhat to focus on
Code, Standards, and the Level II Ethics FrameCode of Ethics and Standards of Professional ConductThe Code, the seven Standards, and a stronger Level II method for isolating the real duty in a mixed fact pattern.
Professionalism, Market Integrity, and Client DutiesGuidance for Standards I-VIIStandards I-III in realistic scenarios involving law, independence, MNPI, manipulation, suitability, fair dealing, and confidentiality.
Employer Duties, Analysis, Conflicts, and Candidate ResponsibilitiesGuidance for Standards I-VIIStandards IV-VII in realistic scenarios involving supervision, reasonable basis, recordkeeping, conflicts, personal trading, and CFA Program responsibilities.
Application Cases, Policies, and Violation AnalysisApplication of the Code and Standards: Level IIFull-case ethics judgment that evaluates both the conduct and the adequacy of firm policies, procedures, and controls.

In this section

Revised on Friday, April 24, 2026