CFA® Program Level I Guides

Ethics in Level I of the CFA® Program: how to study the Code and Standards

By PreparaioEditorial team & sourcesUpdated October 28, 2026

Ethical and Professional Standards is part of the first session of the CFA® Program Level I exam. The questions look like plain reading, but they reward precise knowledge of each Standard and careful reading of short scenarios.

This guide is independent educational content. Preparaio is not affiliated with, endorsed by, or reviewed by CFA Institute. Figures reflect the 2026–2027 windows; check the official CFA Institute pages for current details.

Contents

How ethics is examined

Ethics sits in the first 135-minute session. Each item has three answer choices, all items count equally and wrong answers are not penalised, so answer everything. The exam uses qualifiers such as ‘most likely’ or ‘least appropriate’ instead of ‘except’ or ‘true/false’ — in ethics the qualifier often decides between two plausible answers.

The 2027 weight change

For 2027 ethics drops from 15–20% to 10–15%: out of 180 questions, roughly 18 to 27 items instead of 27 to 36. That is still on a par with the largest topic areas — a reason to rebalance, not to skip. Ethics was also updated to version 12 of the Standards of Practice Handbook, effective from the February 2027 window, so study from the curriculum for the year you sit.

What to study: the Code and the Standards

The core is the Code of Ethics and the Standards of Professional Conduct, grouped under seven headings. Learn this structure first, because it shows whose interest each Standard protects, then work through the sub-standards in the current curriculum. The official topic outline defines the scope.

I — Professionalism
II — Integrity of Capital Markets
III — Duties to Clients
IV — Duties to Employers
V — Investment Analysis, Recommendations, and Actions
VI — Conflicts of Interest
VII — Responsibilities as a CFA Institute Member or CFA Candidate

A study method that works

Ethics rewards precision over volume. Short, repeated passes beat one long read.

For each sub-standard, write one sentence in your own words: who is protected, what is required, what is prohibited.
Invent one situation where it is clearly met and one where it is clearly violated.
Do a small set of ethics questions every week, and log which Standard each mistake belonged to.
Plan a dedicated ethics review close to the exam, because fine distinctions fade quickly.

Typical traps in scenario questions

Most items describe a fictional analyst or firm and ask whether a Standard was violated or which action is appropriate. Read the question line first, then mark the facts that change the outcome: who knew what, when, and who was informed.

Judging intent instead of action.
Assuming that no harm means no violation.
Treating common practice or local law as automatically sufficient.
Assuming disclosure always solves the problem — or never does.
Mixing up whose duty is at stake: client, employer or market.
Missing the qualifier: ‘most likely’ and ‘least likely’ point to opposite answers.

The Standards apply to you as a candidate

Standard VII(A) binds candidates too. After the exam you may not disclose question details or even broad topics or formulas that were or were not tested; saying it felt hard is fine. CFA Institute monitors forums and social media, and misconduct — including using leaked questions — can lead to voided results and suspension or termination of candidacy.

Frequently asked questions

Is ethics still worth serious study at 10–15%?

Yes. It is still roughly 18 to 27 of 180 questions. There is no minimum score per topic, so strong topics can offset weak ones — a reason to keep ethics solid, not to rely on it.

Do I need to memorise the Standard numbers?

Numbers and titles help you organise notes and your error log. What counts is applying each Standard correctly to a situation you have not seen before.

When should I study ethics?

Start early with small weekly doses and add a dedicated review in the final weeks. Ethics distinctions are easy to forget, so a late pass pays off.

Which version of the Standards applies in 2027?

For 2027 the ethics content is based on version 12 of the Standards of Practice Handbook. Use the curriculum for the year you sit.

Sources & currency

Exam version: CFA® Program Level I, curriculum 2027 (from February 2027) (valid from 1 February 2027)
Editorial check: Source check by the Preparaio editorial team (28 October 2026)
Author: Preparaio RedaktionEditorial team, fact-checking against official primary sources
Reviewed by: Source-checked by PreparaioSource comparison with the exam providers' own pages
Fact-check status: Checked against official primary sources (28 October 2026)
Content version: 2026-10-28

How we check: Every exam-relevant fact is compared with the exam providers' official pages (g.a.s.t./TestDaF-Institut, BAMF, ETS, IELTS Partners, telc). The check is editorial, supported by AI and automated test gates; it is not a review by certified examiners.

The hard exam facts in this article were verified against the official primary sources linked below on the date shown. This is not a review by an examination body and does not replace information from your test centre. Fees, dates and local procedures are set by the test centres themselves.

Official primary sources

Level I exam — CFA Institute · cfainstitute.org · official primary source · checked on 28 October 2026
Standard VII(A) — CFA Institute · cfainstitute.org · official primary source · checked on 28 October 2026
Exam misconduct and rules violations — CFA Institute · cfainstitute.org · official primary source · checked on 28 October 2026

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