The Professional Code of Conduct of CGIA Institute sets out the fundamental principles of professional ethics and standards for professionals with the CGIA designation. They derive from the values of CGIA Institute and are essential to achieving its mission to lead the investment analyst profession globally by setting high standards of training, integrity, and professional excellence. Violations may result in disciplinary sanctions. Sanctions can include revocation of membership, candidacy in the CGIA Program, and the right to use the CGIA designation. All members must therefore act and perform their professional duties in accordance with the principles, rules, regulations, and standards set out in this Code of Conduct.

General guidelines and code of ethics

• Act with integrity, competence, diligence, respect, and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the investment profession, and other participants in the global capital markets.
• Avoid, refrain, and desist from any engagements, rhetorics and or actual, written and or verbal, that will lead to the tarnishing the CGIA Institute and or bringing the name of the Institute into disrepute.
• Place the integrity of the investment profession and the interests of clients above your own personal interests.
• Use reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities.
• Practice and encourage others to practice in a professional and ethical manner that will reflect credit on yourself and the profession.
• Promote the integrity of, and uphold the rules governing, capital markets.
• Maintain and improve your professional competence and strive to maintain and improve the competence of other investment professionals.

General Sanctions

• All members, (Candidates, Charterholders, Fellows) are subject to the Institute’s code of conduct.  Violations of any may result in disciplinary sanctions.
• Sanctions can include revocation of membership and or candidacy in the CGIA Program, and the right to use the CGIA designation.
• The Institute has the sole right to determine when a member has violated or engaged in any practices, oral or written that sort to breach these codes of conduct
• All members must therefore act and perform their professional duties in accordance with the principles, rules, regulations, and standards set out in this Code of Conduct.

Standards of professional conduct

• Professionalism

  • Knowledge of the Law
    Members and Candidates must understand and comply with all applicable laws, rules, and regulations (including the CGIA Institute Code of Ethics and Standards of Professional Conduct) of any government, regulatory organization, licensing agency, or professional association governing their professional activities. In the event of conflict, Members and Candidates must comply with the more strict law, rule, or regulation. Members and Candidates must not knowingly participate or assist in and must dissociate from any violation of such laws, rules, or regulations. Members and Candidates must use reasonable care and judgment to achieve and maintain independence and objectivity in their professional activities. Members and Candidates must not offer, solicit, or accept any gift, benefit, compensation, or consideration that reasonably could be expected to compromise their own or another’s independence and objectivity.
  • Misrepresentation
    Members and Candidates must not knowingly make any misrepresentations relating to investment analysis, recommendations, actions, or other professional activities.
  • Misconduct
    Members and Candidates must not engage in any professional conduct involving dishonesty, fraud, or deceit or commit any act that reflects adversely on their professional reputation, integrity, or competence.

• Integrity of capital markets

  • Material Nonpublic Information
    Members and Candidates who possess material nonpublic information that could affect the value of an investment must not act or cause others to act on the information.
  • Market Manipulation
    Members and Candidates must not engage in practices that distort prices or artificially inflate trading volume with the intent to mislead market participants.

• Duties to clients

  • Loyalty, Prudence, and Care
    Members and Candidates have a duty of loyalty to their clients and must act with reasonable care and exercise prudent judgment. Members and Candidates must act for the benefit of their clients and place their clients’ interests before their employer’s or their own interests.
  • Fair Dealing
    Members and Candidates must deal fairly and objectively with all clients when providing investment analysis, making investment recommendations, taking investment action, or engaging in other professional activities.
  • Suitability
    • When Members and Candidates are in an advisory relationship with a client, they must:
      • Make a reasonable inquiry into a client’s or prospective client’s investment experience, risk and return objectives, and financial constraints prior to making any investment recommendation or taking investment action and must reassess and update this information regularly.
      • Determine that an investment is suitable to the client’s financial situation and consistent with the client’s written objectives, mandates, and constraints before making an investment recommendation or taking investment action.
      • Judge the suitability of investments in the context of the client’s total portfolio.
    • When Members and Candidates are responsible for managing a portfolio to a specific mandate, strategy, or style, they must make only investment recommendations or take only investment actions that are consistent with the stated objectives and constraints of the portfolio.
  • Performance Presentation
    When communicating investment performance information, Members and Candidates must make reasonable efforts to ensure that it is fair, accurate, and complete.
  • Preservation of Confidentiality
    Members and Candidates must keep information about current, former, and prospective clients confidential unless:
    • The information concerns illegal activities on the part of the client or prospective client,
    • Disclosure is required by law, or
    • The client or prospective client permits disclosure of the information.

• Duties to employers

  • Loyalty
    In matters related to their employment, Members and Candidates must act for the benefit of their employer and not deprive their employer of the advantage of their skills and abilities, divulge confidential information, or otherwise cause harm to their employer.
  • Additional Compensation Arrangements
    Members and Candidates must not accept gifts, benefits, compensation, or consideration that competes with or might reasonably be expected to create a conflict of interest with their employer’s interest unless they obtain written consent from all parties involved.
  • Responsibilities of Supervisors
    Members and Candidates must make reasonable efforts to ensure that anyone subject to their supervision or authority complies with applicable laws, rules, regulations, and the Code and Standards.

• Investment analysis, recommendation, and actions

  • Diligence and Reasonable Basis
    Members and Candidates must:
    • Exercise diligence, independence, and thoroughness in analyzing investments, making investment recommendations, and taking investment actions.
    • Have a reasonable and adequate basis, supported by appropriate research and investigation, for any investment analysis, recommendation, or action.
  • Communication with Clients and Prospective Clients
    Members and Candidates must:
    • Disclose to clients and prospective clients the basic format and general principles of the investment processes they use to analyze investments, select securities, and construct portfolios and must promptly disclose any changes that might materially affect those processes.
    • Disclose to clients and prospective clients significant limitations and risks associated with the investment process.
    • Use reasonable judgment in identifying which factors are important to their investment analyses, recommendations, or actions and include those factors in communications with clients and prospective clients.
    • Distinguish between fact and opinion in the presentation of investment analysis and recommendations.
  • Record Retention
    Members and Candidates must develop and maintain appropriate records to support their investment analyses, recommendations, actions, and other investment-related communications with clients and prospective clients.

• Conflict of interest

  • Disclosure of Conflicts
    Members and Candidates must make full and fair disclosure of all matters that could reasonably be expected to impair their independence and objectivity or interfere with respective duties to their clients, prospective clients, and employer. Members and Candidates must ensure that such disclosures are prominent, are delivered in plain language, and communicate the relevant information effectively.
  • Priority of Transactions
    Investment transactions for clients and employers must have priority over investment transactions in which a Member or Candidate is the beneficial owner.
  • Referral Fees
    Members and Candidates must disclose to their employer, clients, and prospective clients, as appropriate, any compensation, consideration, or benefit received from or paid to others for the recommendation of products or services.

• Responsibilities as a CGIA member

  • Conduct as Participants in the CGIA Program
    Members and Candidates must not engage in any conduct that compromises the reputation or integrity, validity and security of the CGIA Program.
  • Members (Candidates, Charterholders, Fellows, Affiliates) must avoid, refrain, and desist from any engagements, rhetorics and or actual, written and or verbal, deemed by the Institute as tarnishing  and or bringing the name of the Institute into disrepute.
  • Reference to, the CGIA Designation, and the CGIA Program
    When referring to, CGIA membership, the CGIA designation, or candidacy in the CGIA Program, Members and Candidates must not misrepresent or exaggerate the meaning or implications of membership in CGIA, holding the CGIA designation, or candidacy in the CGIA Program