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Ethics and Trust in Investment Profession

The document outlines ethical standards and principles in the investment profession, emphasizing the importance of moral behavior, fiduciary responsibilities, and maintaining trust. It highlights the necessity for CFA Institute members to adhere to a code of ethics, practice integrity, and ensure transparency in their dealings. Additionally, it discusses the intersection of ethical and legal standards and the implications of unethical behavior on the profession's reputation.

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samiznaydi4
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8 views3 pages

Ethics and Trust in Investment Profession

The document outlines ethical standards and principles in the investment profession, emphasizing the importance of moral behavior, fiduciary responsibilities, and maintaining trust. It highlights the necessity for CFA Institute members to adhere to a code of ethics, practice integrity, and ensure transparency in their dealings. Additionally, it discusses the intersection of ethical and legal standards and the implications of unethical behavior on the profession's reputation.

Uploaded by

samiznaydi4
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

R01-ETHICS AND TRUST IN THE INVESTMENT PROFESSION

C) giving members of a group a minimum level of acceptable behavior.


B) the study of good and bad behavior.
A) the study of moral principles.
C) must include principles-based standards of conduct.
C) may be rules-based or principles-based.
A) suitability standard.
A) considers alternative actions and unintended consequences.
A) fiduciary standard.
C) clients, other employees, and society.
C) Ethical and legal standards often intersect, but not always.
C) abide by a code of ethics.
A) a code of ethics.
A) Identify relevant facts; consider influences and alternatives; decide and act; reflect on
outcomes.
C) decrease the rate of economic growth.
C) establish trust.
C) situational influences.
A) increases risk and the cost of capital.
A) have specialized expert knowledge.
A) aid decision makers in considering alternatives and their potential impacts.
C) Some illegal acts are considered ethical.
R02-Code of Ethics and Standards of Professional Conduct
C) Giving free introductory seminars on investing to the public.
C) CFA Institute members and candidates in the CFA Program.
B) Attending continuing education seminars on investing and inviting colleagues to come
along.
B) Actively lobby for new laws to protect the public.
B) Contractual provisions.
B) Practice and encourage others to practice in a professional and ethical manner that will
reflect credit on members and their profession.
B) act with integrity, competence, diligence, respect, and in an ethical manner...
C) Members shall use reasonable care and exercise independent professional judgment.
C) recommend investments that maximize returns for a given level of risk.
A) violated Standard II(A) Material Nonpublic Information.
B) practices in a professional and ethical manner.
B) may request an appeal to a hearing panel.
B) comply with the CFA Institute Global Investment Performance Standards.
B) payment of a fine.
A) Misdemeanor charge for possession of narcotics.
B) Submit to clients, at least quarterly, itemized statements detailing all of the period’s
transactions.
C) document the details of the conversation with the client with regard to his investment
recommendation.
A) strive to maintain and improve their competence and the competence of others in the
profession.
A) demonstrating diligence, independence, and thoroughness when preparing investment
reports.
B) integrity, competence, and respect.
A) public censure.
C) Solemnity.
C) may be suspended from membership.
A) independent.
C) anyone.
C) from sources other than written complaints or members and candidates self-reporting.
A) use reasonable care and exercise independent professional judgment.
B) reflect credit on members and the profession.
B) CFA charter holders and candidates for the CFA designation.
A) refrain from any conduct that compromises the reputation or integrity of the CFA
designation.

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