Standards of Practice Council

Membership Qualifications and Responsibilities:  The Council shall be composed of between 5 and 12 members. The membership shall consist of CFA Charterholders, active in the profession, with at least 10 years of professional experience, and an understanding of the requirements of the CFA Institute Code and Standards. The primary responsibility of the members is to identify ethical issues in the investment industry and draft and review interpretive guidance for the Code and Standards on those ethical issues, especially with regard to new practices, technologies, or other developments related to the investment profession.  Members are also responsible for:

• contributing to the development and promotion of ethics initiatives of CFA Institute, including global industry ethical codes and standards and ethics education products in support of CFA Institute goals and objectives. 
• assisting CFA Institute in working with firms, legislative, regulatory, standard-setting bodies, and the global investment community to improve the ethics of the investment profession and the integrity of global capital markets, 
• providing input and guidance to the credentialing work of CFA Institute through ethics curriculum development and review. 
• recommending revisions or amendments to existing provisions or recommending new provisions for the Code and Standards as necessary.

Volunteer Commitment:  Members shall serve 1-year terms that are renewable for up to three consecutive years. Service on the SPC requires significant time commitment (50-100 hours per year) for preparation and review of documents and participating in virtual meetings, which may be held during or outside of work hours given the globally diverse nature of the committee.  Active and consistent participation by members in the work of the Council is critical to the development of sound, considered positions and informative interpretive guidance of the Code and Standards. Members are expected to participate in meetings and other Council activities on a regular basis. Members can earn Professional Learning (PL) Credit Hours for volunteer service on this committee (i.e., 1 CE hour per call, including up to 2 SER hours per year). 

Conflicts of Interest:  Each member must disclose any conflict of interest that could affect their judgment on the Council to the Staff Liaison for the Council. Members shall recuse themselves from discussions and decisions related to any matter in which they have a conflict of interest. Members shall also comply with all relevant laws, regulations, and ethical standards related to conflicts of interest. All Council members are subject to CFA Institute policies and guidelines regarding conflicts of interest. Members of the Committee are permitted to make their membership on the Committee known to external parties. However, members are not permitted to use their relationship with the Committee or CFA Institute to actively promote their own business interests, those of their employer, or a third party

Confidentiality:  Members have an obligation to keep confidential all non-public information that relates to CFA Institute business that he or she receives in connection with serving on the Council. Members shall not use such information for personal benefit or the benefit of persons or entities outside the CFA Institute, nor shall they disclose this information for any purpose unless disclosure and/or use of such information is otherwise authorized. The proceedings and deliberations of the Council and its subcommittees are also confidential non-public information and are subject to strict protection. 

Application Process:  A Nominating Committee shall be established to identify and review the experience and qualifications of potential candidates for members and the Chair. The Nominating Committee shall work with CFA Institute to recruit candidates for consideration on a regular basis from the membership of CFA Institute and other appropriate sources. In reviewing each candidate and developing its recommendations, the Nominating Committee shall consider not only each individual’s qualifications and experience but also the current and desired mix of experience, competency, and geographic and other types of diversity of the Council as a whole.