Professional Conduct Program(PCP) – CFA

CFA institute enforces the Code of Ethics and Standards of Professional Conduct and the rules and regulations of the CFA Program and monitor compliance through the Professional Conduct Program. Professional Conduct Program (PCP) is under the supervision of CFA Institute – Board of Governors and the Disciplinary Review committee is responsible for enforcing the Code and Standards.

The Disciplinary Review Committee determines whether an inquiry should be initiated or not. An inquiry is initiated with the information obtained from any of the following four sources.

• Members and Candidates disclose their involvement in Civil or criminal litigation or they are subjected to any written compliant. Each member must annually complete and sign a Professional Conduct Statement, disclosing any allegations of professional misconduct. This will prompt the committee for an investigation.
• If written complaint(s) are received by PCP then an investigation action may be taken.
• PCP staff can get aware by public or media news and this may initiate an investigation action.
• If CFA examination proctors submit a violation report on any of the candidate during his examination then investigation action may be taken.

Once the inquiry is initiated the PCP staffs start the investigation procedure. Once investigation starts the suspected person would be asked to submit an explanation in writing. After interviewing both the member/candidate and complaining party(or parties) the supporting documents and other related records will be submitted by the PCP staff.

Now a Designated officer will review all the submitted materials and may:

• Conclude that no need of disciplinary action.
• Issue a letter of caution.
• Further continue with proceedings.

If proceedings continue and the designated officer proposes sanction then the member/candidate can either accept or reject. If the sanction is accepted then the member/candidate should accept that the sanction can adversely affect his carrier and can even be suspended or permanently expelled from CFA program.

In case the sanction is rejected then the matter gets referred to hearing panel made up of CFA institute members.