In a previous article, we introduced the CFA Institute
Investment Foundation Program (Read
more here). It is a free program
designed for anyone who wants to enter or advance within the investment
management industry, including IT, operations, accounting, administration, and
marketing. Candidates who successfully
pass the online exam earn the CFA Institute Investment Foundations Certificate.
There are total of 20 Chapters in 7 modules, covering all
the essential topics in finance, economics, ethics and regulations. This series of article will highlight the
core knowledge of each chapter.
Chapter 2 provides an overview of ethics & investment
professionalism. The learning outcome of chapter 2 is as follows:
·
Describe the need for ethics in the investment
industry;
·
Identify obligations that individuals in the
investment industry have to clients, prospective clients, employers, and
co-workers;
·
Identify elements of the CFA Institute Code of
Ethics;
·
Explain standards of practice (professional
principles) that are based on the CFA Institute Code of Ethics;
·
Describe benefits of ethical conduct;
·
Describe consequences of conduct that is
unethical or unprofessional;
·
Describe a framework for making ethical
decisions.
Ethics plays an essential role in protecting financial
market’s integrity and the functioning of the investment industry. Financial
market integrity refers to financial markets that are ethical and transparent
and provide investor protection. Trust in the investment industry is enhanced
when workers in the industry make decisions that are ethically sound.
When trust is absent, investors are less likely to
participate in financial markets. Without investment, investors may be unable
to reach their financial goals. Without available capital for companies,
economic growth will slow. So, it is important that investors are treated
fairly because society benefits from well-functioning financial markets.
The CFA Institute
Code of Ethics
Members of CFA Institute (including CFA charterholders) and
candidates for the CFA designation must:
·
Act with integrity, competence, diligence,
respect, and in an ethical manner with the public, clients, prospective
clients, employers, employees, colleagues in the investment profession, and
other participants in the global capital markets.
·
Place the integrity of the investment profession
and the interests of clients above their own personal interests.
·
Use reasonable care and exercise independent
professional judgment when conducting investment analysis, making investment
recommendations, taking investment actions, and engaging in other professional
activities.
·
Practice and encourage others to practice in a
professional and ethical manner that will reflect credit on themselves and the
profession.
·
Promote the integrity and viability of the
global capital markets for the ultimate benefit of society.
·
Maintain and improve their professional
competence and strive to maintain and improve the competence of other
investment professionals.
Sample Question:
No comments:
Post a Comment