A code of ethics is a set of written guidelines that establish the standards of behavior and conduct expected of employees in a business setting. It’s a broad document that outlines professional expectations and helps to ensure that employees make good decisions.
All SEC-registered firms (and some state registered firms) are required under Rule 204A-1 to create and maintain a written Code of Ethics which covers:
The SEC has kept its codes of ethics ruling intentionally broad. Firms are encouraged to create their own financial adviser ethics codes which best reflect their business models and operations.
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