Adoption of the CFA Institute’s Code of Ethics and Standards of Professional Conduct
Code of Ethics and Standards of Professional Conduct (Code and Standards) are fundamental to the values of any profession. Following a recent partnership agreement, the MTA and CFA Institute now follow a single Code and Standards benefitting the global financial community by setting high standards of education, integrity, and professional excellence. The original MTA Code of Ethics was comprehensive and covered all of the important standards of professional behavior. The shortcoming was a lack of case studies and examples of how to apply the Code. This licensing agreement makes all of the CFAI’s Code and Standards developed over several decades available to MTA members. For CMT candidates, this licensing agreement provides clear readings which will make studying for the exam a more efficient process.
A more detailed description of the rationale and adoption process was included in the May 2015 issue of Technically Speaking. To read the article, along with a letter from MTA president Craig Johnson, CMT, CFA please click here: http://docs.mta.org/technically-speaking/15-may/
Ethics and the CMT Program
An integral part of the MTA’s mission is to establish, maintain, and encourage the highest standards of professional competence and ethics among our membership. As such, MTA membership must abide by the Code and Standards and are encouraged to notify their employer of this responsibility. Violations may result in disciplinary sanctions by MTA. Sanctions can include revocation of membership and the right to use the CMT designation. In addition, and because the MTA places high value on ethical competency, all three levels of the CMT Program include questions pertaining the Code and Standards.
Below is the Code and Standards the MTA licensed on behalf of its members from the CFA Institute. All references to “members and candidates” should be read to apply to MTA members. Articles I – VI of the Standards apply in whole to MTA members and our CMT Program. Article VII is not included by the MTA when setting standards by which our membership must abide nor is it included on the CMT exams. In addition, MTA members must not engage in any conduct that compromises the reputation or integrity of MTA or the CMT designation or the integrity, validity, or security of the CMT examinations. When referring to the MTA, membership in the MTA, the CMT designation, or participation in the CMT Program, members must not misrepresent or exaggerate the meaning or implications of membership, holding the CMT designation, or participation in the CMT Program.
When preparing for the CMT exams candidates can choose to review the Standards of Practice Handbook or use a condensed version that simply lists the Code and Standards. According to the CFA Institute “The Standards of Practice Handbook grounds the concepts covered in the Code and Standards for practical use. You can use this handbook for guidance on how to navigate ethical dilemmas you might face in your daily professional life.” It is not required that CMT candidates review the Handbook, though it might provide a more comprehensive study process.
MTA’s Preamble to the Code of Ethics and Standards of Professional Conduct
Ethics and Standards of Professional Conduct (Code and Standards) are fundamental to the values of any profession. The Market Technicians Association and CFA Institute believe a single Code and Standards benefit the global financial community by setting high standards of education, integrity, and professional excellence. High ethical standards are critical to maintaining the public’s trust in financial markets and in the investment profession. Since their creation in the 1960s, the Code and Standards have promoted the integrity of CFA Institute members and served as a model for measuring the ethics of investment professionals globally, regardless of job function, cultural differences, or local laws and regulations. The MTA joins the CFA Institute in promoting a single standard for all finance professionals.
Code and Standards Resources
- Code of Ethics and Standards of Professional Conduct
- Standards of Practice Handbook, 11th Edition
- Translations of the Code and Standards – please note for the CMT exams all questions are in English
- Additional Resources