CFA® Level I Exam Ethics Practice Questions

Ethics is tested in session 1 of the CFA® Level I exam and carries 10–15% of the questions under the 2027 curriculum. Practice original scenario questions on every Standard, read why each answer is right, then take the free ten-question ethics drill.

Take the full timed Level I mock exam

180 three-choice questions in two timed sessions of 135 minutes, weighted like the real exam, with a score by topic and the full working for every answer. 22 of the 180 questions are ethical and professional standards.

Or try the free ethics drill
  • 71 original ethical and professional standards questions with worked answers
  • 10–15% of the exam under the 2027 curriculum, session 1
  • 22 of the 180 questions in our full mock
Free sample · Question 1 of 3Ethical and Professional Standards

While riding in an elevator, Daniel overhears the CEO of Fennick Ltd. telling a colleague that Fennick will announce an unexpected acquisition tomorrow. Daniel's most appropriate action is to:

What our ethical and professional standards questions cover

  • The six components of the Code of Ethics and the seven Standards with their sub-standards, I(A) to VII(B)
  • Scenario questions: did the analyst, portfolio manager or candidate violate the Standards, and which one
  • Material nonpublic information and the mosaic theory; market manipulation
  • Duties to clients: loyalty, prudence and care, fair dealing, suitability, performance presentation, confidentiality
  • Duties to employers, supervisors’ compliance duties, outside compensation and referral fees
  • Conflicts of interest, priority of transactions and record retention
  • How candidates and charterholders may and may not refer to the CFA® Program and designation
  • Ethics and trust in the profession, ethical vs legal standards, and the Professional Conduct Program
Line drawing of a balanced scale, a closed rule book with a ribbon, a fountain pen and a shield with a check mark

This list is our own summary of the topic, written for practice. The official topic outline and learning outcomes are published by CFA Institute for registered candidates.

Drill ethical and professional standards, then sit the full mock

Take the full timed Level I mock exam

180 three-choice questions in two timed sessions of 135 minutes, weighted like the real exam, with a score by topic and the full working for every answer. 22 of the 180 questions are ethical and professional standards.

Or try the free ethics drill

Ideas the questions test most

  1. When local law and the Standards differ, follow the stricter of the two. When the law is stricter, the law governs; when the Standards are stricter, the Standards govern.
  2. Information is material and nonpublic when a reasonable investor would want it and it has not been disseminated to the market. You may not act or cause others to act on it. Combining public information with nonmaterial nonpublic information (the mosaic theory) is allowed.
  3. Priority runs clients first, then the employer, then yourself. Client trades go before trades for family accounts or your own.
  4. Fair dealing means treating all clients fairly when you disseminate recommendations and act on them, not identically. Suitability means a recommendation must fit the client’s objectives and constraints in the investment policy statement.
  5. Compensation from a source other than your employer that could create a conflict with your employer’s interests needs your employer’s written consent before you accept it.
  6. Disclose conflicts that could reasonably impair your independence and objectivity, prominently and in plain language, to clients, prospects and your employer.
  7. Use “CFA” as an adjective, never as a noun. A candidate may say they are a candidate in the CFA Program and which level they passed, but may not imply a partial designation or claim superior ability from passing.

Start the free ethical and professional standards drill · Full Level I mock exam · Mixed drill

Common questions

How much of the CFA Level I exam is ethics?

Ethical and Professional Standards is 10–15% of the Level I exam under the 2027 curriculum, which applies from the February 2027 exam window. Under the 2026 curriculum it was 15–20%. Ethics is tested in session 1.

What do the ethics questions look like?

Most are short scenarios: an analyst, portfolio manager or candidate does something, and you decide whether it violates the Code and Standards and, if so, which Standard. Others test the Code’s components, the stricter-of-law-or-Standards rule and how to refer to the CFA designation.

Are these CFA Institute ethics questions?

No. Every question is original and written by us to the publicly available Code of Ethics and Standards of Professional Conduct. None is taken from the curriculum, the Standards of Practice Handbook or CFA Institute sample questions.

Take the full timed Level I mock exam

180 three-choice questions in two timed sessions of 135 minutes, weighted like the real exam, with a score by topic and the full working for every answer. 22 of the 180 questions are ethical and professional standards.

Or try the free ethics drill

More Level I topics

Topic weights and exam format: CFA Institute: Level I exam (format and topic weights) · CFA Institute: Code of Ethics and Standards of Professional Conduct, checked November 2026.

Game Assessment Prep is an independent practice site. It is not affiliated with, endorsed by or a prep provider of CFA Institute, and CFA Institute does not endorse, promote or warrant the accuracy of these questions. Every question is original; none is taken from CFA Institute materials.

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