Which is an example of an activity that may be legal but that CFA Institute considers unethical?

The investment industry has examples of conduct that may be legal but that CFA Institute considers unethical. Trading while in possession of material nonpublic information is not prohibited by law worldwide and can, therefore, be legal, but CFA Institute considers such trading unethical.

Who most likely determines whether a violation of the CFA Institute Code and Standards or testing policies has occurred and what sanction should be imposed the?

Both the Professional Conduct Staff and the Disciplinary Review Committee are responsible for determining whether a violation of the Code and Standards or testing policies has occurred and if so what sanction should be imposed.

Why is CFA ethics important?

The CFA Institute Code of Ethics encourages all members to “maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.” Each charterholder, candidate for the designation, and member of CFA Institute has an ethical expectation to continue their …

Why is it important for finance professionals to behave ethically?

High ethical standards are critical to maintaining the public’s trust in financial markets and in the investment profession. A strong ethics-based culture that helps people engage in and promote ethical behaviour will foster trust, lead to robust global capital markets, and ultimately benefit society.

What are professional ethical standards?

Professional ethics are principles that govern the behaviour of a person or group in a business environment. Like values, professional ethics provide rules on how a person should act towards other people and institutions in such an environment.

Which of the following statements is most accurate investment professionals have a special responsibility to act ethically because?

Which of the following statements is most accurate? Investment professionals have a special responsibility to act ethically because? they are entrusted to protect clients’ assets.

Can CFA be revoked?

This supports the reputation and integrity of CFA Institute, its members, designations, and exam programs. Conduct violations can result in sanctions, including suspension or revocation of an individual’s membership and right to use the CFA designation or a suspension or ban from the CFA Program.

Can you lose a CFA charter?

There is a US$30 charge for duplicate CFA charters. *This charge is waived only if the original is never received, if the charter is damaged in transit from CFA Institute to the charterholder, or if it is damaged by fire or flood.

Why ethic and ethical standards are important in the investment industry?

Which of the following is a consequence of unethical behaviour in the investment industry?

Unethical behaviour in the investment industry may lead to a loss of investor confidence, which may reduce the availability of capital to companies and lead to decreased economic output.

What are the Ethics which should be followed by a finance professional?

The purpose of this Code of Ethics for Financial Professionals (“Code”) is to deter wrongdoing and to promote: (1) honest and ethical conduct; (2) full, fair, accurate, timely and understandable disclosure of financial information; (3) compliance with applicable laws, rules and regulations; (4) the prompt internal …

Is it enough for a business simply to follow the law?

Although law abidance is surely an aspect of one’s ethical obligation to be a responsible citizen, it is important to remember that laws and rules establish only minimal standards of propriety. …