Which obligation does a CFA member have towards clients?

The obligation of a CFA member towards clients is underscored by the principle of acting with loyalty and care in their financial interests. This principle means that CFA members must prioritize their clients’ needs and objectives, ensuring that they make decisions that are in the best interests of the client rather than their own personal gain.

This commitment to loyalty involves believing in the fiduciary standard, where the advisor must act in good faith and provide full disclosure of any potential conflicts of interest. Additionally, acting with care implies that a CFA member should exercise prudent judgment, applying their expertise to serve the clients effectively and responsibly.

The core of this obligation is to foster trust, maintain ethical standards, and uphold the integrity of the financial profession. By placing the welfare of clients above all else, CFA members contribute to a reliable financial advisory environment where clients can feel secure in their investments and financial strategies.