Independence and objectivity
Standard I(B): use reasonable care to keep judgement independent, and do not offer, solicit or accept anything that could reasonably be expected to compromise one's own or another's independence.
Where you will meet it
Independence and objectivity appears in 5 learning outcomes on the CFA syllabus. A few of them:
- Use Standard I (Professionalism) to judge a case
“Independence and Objectivity requires reasonable care to maintain independence and objectivity against pressure, and prohibits offering, soliciting or accepting any gift or benefit that reasonably could be expected to compromise judgement.”
- Apply the CFA Institute Code and Standards to the conduct of people who choose external managers
“Standard I(B) Independence and Objectivity warns against accepting gifts, travel or entertainment from managers seeking the mandate.”
- Set out the ethical and professional obligations flowing from each of the six General Principles in the Asset Manager Code
“The six General Principles are the ideals every provision serves: behave professionally and ethically at all times; act for the benefit of clients; act with independence and objectivity; act with skill, competence and diligence; communicate with clients accurately and on time; and uphold the rules that govern capital markets.”
- Put the Independence and Objectivity standard, I(B), into practice
“Members must use reasonable care to achieve and maintain independence and objectivity, and must not offer, solicit or accept anything that could reasonably be expected to compromise their own or another's independence.”
Practise it
Practise independence and objectivity until it is automatic: questions that explain every wrong option.
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