What is Ethics?
a set of shared beliefs about what is good or acceptable behavior and what is bad or unacceptable behavior
How can professions establish trust?
By requiring high standards of expertise, knowledge, and skill;Establishing standards of ethical behavior; Monitoring professional conduct
How can failure to act in an ethical manner affect ?
client wealth and success of investment firm
What are 2 standards which financial proffesionals are held to?
suitability and fiduciary standards
How many steps of ethical decision making framework are there?
4 (identify,consider,decide and act,reflect)
Professional standards of practice:
C. are a personal view of acceptable behavior
A.specify a minimum level of acceptable conduct
B.encompass current “best practices”
Situational factors that influence ethical behavior are least likely to include:
large financial rewards
a lack of ethical principles
social pressure
Employing a framework for decision-making that includes the ethical aspects of the decision is most likely to:
avoid any unintended ethical consequences of decisions
balance the interests of various stakeholders
1. In the case of a complaint about a member’s professional conduct, CFA Institute Professional Conduct Program staff are least likely to:
suspend the member’s right to use the CFA designation
review documents and records related to the complaint
request interview with member or wi party making complaint
Which of the following requirements for members and candidates is one of the six components of the Code of Ethics?
Maintain and improve their professional competence
Do not act or cause others to act on material nonpublic info
Distinguish b/n fact and opinion when presenting invest anal
If a member or candidate is offered an additional compensation arrangement by a client, which of the seven Standards of Professional Conduct states the requirements the member or candidate must follow?
Duties to Employers
Duties to Clients
Conflicts of Interest
