What is the primary purpose of the CFA Institute's Code of Ethics?

The primary purpose of the CFA Institute's Code of Ethics is to guide members towards ethical conduct. This Code is designed to establish a standard of ethical behavior and professional responsibility for all members of the CFA Institute. By promoting integrity, transparency, and professionalism, the Code helps to ensure that members act in the best interests of their clients and the wider financial community. This guidance is crucial in maintaining trust and confidence in the investment profession, which relies heavily on ethical practices.

The focus on ethical conduct serves the broader goal of fostering a culture of accountability and upholding the values of the finance industry, which can impact clients, markets, and the profession as a whole. This emphasis on ethics directly influences how members conduct their affairs, provide investment advice, and interact with various stakeholders, ensuring that their actions reflect the highest standards of professionalism.

In contrast, other options do not align with the fundamental mission of the CFA Institute's Code. For instance, promoting personal financial gain or preventing competition contradicts the essence of ethical behavior in finance, which prioritizes client interests and market integrity over individual profit or competitive advantage. Similarly, while the Code may have implications for the regulation of the securities industry, its primary aim is rooted in guiding ethical conduct rather than serving as a regulatory framework