CFA Institute Unveils Revised Code of Ethics and Standards of Professional Conduct; Revised Code and Standards Identifies Best Practices in the Investment Profession, Delivers New Guidance to the Global CFA Institute Membership.

CHARLOTTESVILLE, Va. -- After a long review process, several revisions and careful consideration and solicitation of public comment, CFA Institute today released the latest version of its Code of Ethics and Standards of Professional Conduct. The Code and Standards are a set of principles that define the professional conduct CFA Institute expects from its Chartered Financial Analyst(R) (CFA(R)) candidates, CFA charterholders and members and outline what constitutes fair and ethical business practices.

Dating back to 1962, the Code and Standards serve as the organization's support for advancing the interests of the global investment community and establishing and maintaining the highest standards of professional excellence and integrity. CFA Institute and its predecessor organizations have revised them on a periodic basis to keep pace with the ever-changing nature of the investment industry. The revised Code and Standards will become effective 1 January 2006 and are mandatory for all CFA Institute members, CFA charterholders and CFA candidates. CFA Institute also recommends that firms and non-members use its Code and Standards as benchmarks for their own ethical conduct.

The Code and Standards were updated to improve clarity and comprehension on a global basis, address current industry issues and promote best practices within the investment profession. The text of the Code and Standards was also revised to ensure the language would translate easily for the growing number of CFA Institute members and candidates from outside of North America.

"An important goal of CFA Institute is to ensure that the organization and its members develop, promote and follow the highest ethical standards in the investment industry," said Jeff Diermeier, CFA, president and CEO of CFA Institute. "Our Code of Ethics and Standards of Professional Conduct remain at the heart of our organization. Adherence to the Code and Standards is what primarily differentiates a CFA Institute member from other financial professionals."

CFA Institute will incorporate the new Code and Standards into the CFA Program curriculum for the 2006 exam year.

The revisions to the Code and Standards focus on six main areas.

--Reorganization of Standards. The Standards, which work in tandem with the Code, have been reorganized to improve clarity, reduce duplication and enhance comprehension.

--Revision of Current Standards. To better address the current state of the investment profession and delineate best practices in specific areas, CFA Institute revised the Standards, including those dealing with misrepresentation, duty to employer, suitability, duty of loyalty to clients, disclosure of conflicts and insider trading.

--Clarification Requirements. The revisions streamline the requirements in the Standards with those found in the Standards of Practice Handbook. The guidance in the 9th edition of the Handbook (available July 2005) will provide authoritative interpretation of the Code and Standards as they apply to specific circumstances and suggest recommended procedures for compliance.

--New Standards. CFA Institute added standards relating to market manipulation and record retention to better address the current state of the investment profession.

--Maintaining Relevance to a Global Membership. To reflect the growth of the CFA charter outside of North America, the Code and Standards have been changed to be more applicable on a global basis.

--Text Revisions. In addition to maintaining global relevance, the revised Code and Standards use language that can be easily understood and translated into different languages, thus facilitating access by the global CFA Institute membership base.

"Our Code and Standards represent who we are and what we do as investment professionals," said Diermeier. "They identify what investors and employers should expect from any money manager in any part of the world."

The Code and Standards were last updated in 1999. The most recent revisions were spearheaded by the CFA Institute Standards of Practice Council (SPC), a group of 15 CFA charterholder volunteers from nine countries. The SPC is charged with maintaining and interpreting the Code and Standards to ensure their effectiveness. CFA Institute first issued the proposed new Code and Standards for a period of public comment from July to October 2003.

About CFA Institute:

CFA Institute is the global, non-profit professional association that administers the Chartered Financial Analyst(R) curriculum and examination program worldwide and sets voluntary, ethics-based professional and performance-reporting standards for the investment industry. CFA Institute has 76,000 members in 119 countries. Its membership includes the world's 64,000 CFA charterholders, as well as 131 affiliated professional societies and chapters in 52 countries and territories. CFA Institute is headquartered in Charlottesville, Va., USA, with additional offices in London and Hong Kong. CFA Institute was known as AIMR (Association for Investment Management and Research) from 1990 to early 2004, and before that was two separate organizations whose roots go back to 1947. More information may be found at www.cfainstitute.org or by calling 1-800-247-8132 or 1-434-951-5499 in the U.S., 44-207-712-1719 in London or 852-2868-2700 in Hong Kong.