📖 Standard I(D) — 不当行为（Misconduct）

Module: 1 — Ethics & Professional Standards
Section: 1.2 Standard I(D) — Misconduct
Progress: 11/560 lessons
Date: May 18, 2026

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📚 Review (Quick Recap of L010)

In previous lessons, we covered: - Standard I(A): Knowledge of the Law — know and comply with applicable laws and regulations - Standard I(B): Independence & Objectivity — maintain independence and objectivity in professional activities - Standard I(C): Misrepresentation — do not knowingly misrepresent facts or opinions

Today we add the final component of Standard I.

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🆕 New Concepts: Standard I(D) — Misconduct

The Full Text of Standard I(D):

Members and Candidates must not engage in any professional conduct involving dishonesty, fraud, or deceit or commit any act that reflects adversely on their professional reputation, integrity, or competence.

Key Elements Breakdown

Element	Description
Dishonesty	Lying, withholding material truth, misrepresenting facts
Fraud	Deceptive practices intended to secure unfair or unlawful gain
Deceit	Intentional misleading through words or conduct
Adverse Reflection	Any act (even outside work) that damages professional reputation, integrity, or competence

⚠️ Critical Distinction: Professional vs. Personal Conduct

Standard I(D) does NOT regulate purely personal behavior. The test is:

Does the act reflect adversely on professional reputation, integrity, or competence?

• Personal bankruptcy from bad investments? → Probably not covered
• Personal bankruptcy from embezzlement? → Covered (reflects on honesty)
• Drunk driving conviction? → May not be covered (legal issue, but consider if it reflects on professional judgment)

Scope of Standard I(D)

1. Professional Context: Dishonest acts in the workplace (e.g., falsifying expense reports, stealing client data)
2. Professional Adjacent: Acts that call into question one's fitness as an investment professional (e.g., fraud in personal business dealings)
3. Criminal Conduct: Especially crimes involving dishonesty (fraud, theft, bribery, perjury)

What Standard I(D) Does NOT Cover

• Purely personal matters with no professional impact
• Minor legal infractions unrelated to honesty (e.g., parking tickets)
• Political or personal beliefs (unless expressed in a way that involves dishonesty)

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🔍 Application Scenarios

Scenario 1: Expense Report Fraud

Facts: Maria, a CFA charterholder, submits expense reports claiming client entertainment expenses of $5,000, when actual expenses were $2,500. She pockets the difference.

Analysis: Maria has engaged in dishonesty (falsifying records) and fraud (obtaining money under false pretenses). This directly violates Standard I(D). It also reflects adversely on her integrity.

Violation: ✅ Clear violation of I(D)

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Scenario 2: Resume Inflation

Facts: James claims on his resume that he graduated "summa cum laude" when he actually graduated with honors (cum laude). He also claims fluency in Mandarin when he can only order food.

Analysis: This involves misrepresentation (also I(C)) and dishonesty (I(D)). Resume inflation is professional conduct involving deceit and reflects adversely on integrity.

Violation: ✅ Violates both I(C) and I(D)

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Scenario 3: Personal Tax Evasion

Facts: A CFA candidate fails to report $50,000 of side income on their personal tax return and is convicted of tax evasion.

Analysis: Tax evasion is a crime of dishonesty. Even though it's "personal" finances, it reflects directly on the individual's honesty and integrity. This violates I(D).

Violation: ✅ Violation of I(D)

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Scenario 4: Bar Fight (No Dishonesty Involved)

Facts: After a stressful week, David gets into a physical altercation at a bar and is charged with misdemeanor assault. No dishonesty or fraud was involved.

Analysis: While this shows poor judgment, it does not involve dishonesty, fraud, or deceit. CFA Institute generally does not view isolated instances of non-fraudulent personal conduct as I(D) violations — though it may still reflect poorly on professionalism.

Violation: ❌ Probably not a violation of I(D) (but may be a warning sign for employers)

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Scenario 5: Lying About CFA Exam Progress

Facts: A candidate tells their employer they "passed Level I" when they have not yet received results — reasoning that they "feel very confident."

Analysis: This is a deliberate false statement about professional qualifications. It involves dishonesty and reflects adversely on integrity. This violates I(D) and Standard VII(B) regarding proper use of CFA designation references.

Violation: ✅ Clear violation of I(D)

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🧩 The Relationship Between I(A), I(B), I(C), and I(D)

Standard	Focus	Key Question
I(A)	Legal/regulatory compliance	Did you follow the law?
I(B)	Independence/Objectivity	Are you free from conflicts?
I(C)	Misrepresentation	Did you state the truth?
I(D)	Misconduct	Are you honest and ethical?

Overlap example: Falsifying a client report to inflate performance: - I(A): Violates securities laws - I(B): Shows lack of objectivity - I(C): Misrepresents performance - I(D): Act of dishonesty

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📝 Practice Quiz (5 Questions)

Question 1

An investment advisor is convicted of shoplifting a $20 item. Which of the following is most accurate regarding Standard I(D)?

A) This does not violate I(D) because the amount is trivial
B) This violates I(D) because theft involves dishonesty, regardless of the amount
C) This violates I(D) only if the advisor's employer learns of the conviction

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Question 2

Which of the following actions would least likely violate Standard I(D) — Misconduct?

A) A CFA charterholder exaggerates past investment returns during a job interview
B) A portfolio manager is convicted of drunk driving
C) An analyst falsifies travel expense reports to the employer

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Question 3

Standard I(D) most directly addresses conduct involving:

A) Violation of securities regulations
B) Failure to disclose conflicts of interest
C) Dishonesty, fraud, or deceit in professional activities

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Question 4

A CFA candidate tells colleagues they "already passed Level I" when they are actually sitting for the exam next month. This statement:

A) Only violates Standard I(C) — Misrepresentation
B) Only violates Standard I(D) — Misconduct
C) Violates both I(C) and I(D)

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Question 5

Which scenario would be a violation of Standard I(D)?

A) An analyst loses a client's money due to poor market timing
B) A CFA charterholder lies to the IRS on their personal tax return and is convicted
C) A portfolio manager makes an honest mistake in a performance calculation

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✅ Answer Key

1. B — Theft is an act of dishonesty regardless of the monetary amount. Shoplifting reflects adversely on integrity.
2. B — A DUI conviction, while serious, does not inherently involve dishonesty, fraud, or deceit. The other two options clearly involve dishonesty.
3. C — Standard I(D) specifically addresses dishonesty, fraud, and deceit. A relates to I(A), B relates to VI(A).
4. C — The statement is both a misrepresentation (I(C)) and an act of dishonesty (I(D)).
5. B — Tax fraud is a crime of dishonesty. A is poor performance (not misconduct), C is an honest error (not dishonesty).

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📌 Summary

Concept	Key Takeaway
Core Rule	No professional conduct involving dishonesty, fraud, deceit, or acts that reflect adversely on reputation
Personal vs. Professional	Only applies when the act reflects on professional reputation, integrity, or competence
Triviality Test	The amount or severity does not matter — any dishonest act can violate I(D)
Overlap	Often overlaps with I(C) — Misrepresentation when false statements are involved
Criminal Conduct	Crimes involving dishonesty (fraud, theft, bribery) almost always violate I(D)

Bottom Line: Standard I(D) is CFA Institute's "honesty clause." Don't lie, cheat, steal, or do anything that makes people question whether you're the kind of person who should manage other people's money.

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Next Lesson: L012 — Standard I(D) Application Scenarios: Honesty, Reputation, and Legal Boundaries