stakeholders

individuals or groups of individuals who could be affected either directly or indirectly by a decision and thus have an intere
stakeholders in decisions made by investment industry professionals include our colleagues, our clients, our employers, th
investment profession, trade associations, regulators, and other financial market participants.

Ethics encompasses a set of moral principles and rules of conduct that provide guidance for our behavior.

Moral principles or ethical principles are beliefs regarding what is good, acceptable, or obligatory behavior and what is ba
principles may refer to beliefs regarding behavior that an individual expects of himself or herself, as well as shared beliefs
required by a community or societal group.

Specific communities or societal groups in which we live and work sometimes codify their beliefs about obligatory and forb
often called a code of ethics.

These standards of conduct serve as benchmarks for the minimally acceptable behavior of community members and can h

A profession is an occupational community that has specific education, expert knowledge, and a framework of practice an
respect, and recognition.

How Professions Establish Trust

Professions normalize practitioner behavior
Professions provide a service to society
Professions are client focused.
Professions have high entry standards.
Professions possess a body of expert knowledge
Professions encourage and facilitate continuing education
Professions monitor professional conduct
Professions are collegial
Professions are recognized oversight bodies
Professions encourage the engagement of members

A profession is an occupational group (e.g., doctors or lawyers) that has requirements of specialized expert knowledge, an
the larger community or society. Additionally, a profession may have the following characteristics:
A code and standards for professional behavior.
A regulatory body to enforce rules concerning professional behavior and monitor the ethical behavior of members.
A focus on the needs of their clients (e.g., students, patients).
A focus on service to society.
A requirement to put client interests

Ways that professions establish trust include:

Requiring high standards of expertise, knowledge, and skill.
Establishing standards of ethical behavior.
Monitoring professional conduct.
Encouraging continuing education to maintain and increase competence.
Being focused on clients’ needs.
Mentoring and inspiring others in the profession

Not all unethical actions are illegal and not all illegal actions are unethical.
Whistle - blowing behavior - ethical

The following ethical decision-making framework is presented in the Level I CFA curriculum:
Identify: Relevant facts, stakeholders and duties owed, ethical principles, conflicts of interests.
Consider
Decide and act
Reflect

A professional code of conduct can increase public trust in the profession.

code of ethics is considered a higher standard of behavior as it goes beyond simply legality of behavior.

Code of Ethics
Act with integrity, competence, diligence, respect, and in an ethical manner with the public, clients, prospective clients, em
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 inves
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 th

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 investm

The standard of professional conduct

Professionalism
Integrity of capital markets
duties to clients
duties to employers
investment analysis, recommendation and actions
conflicts of interest
Responsibilities as a CFA

PROFESSIONALISM
Knowledge of the Law.
Independence and Objectivity.
Misrepresentation
Misconduct.
on and thus have an interest, or stake, in the decision. Examples of
clients, our employers, the communities in which we live and work, the

ry behavior and what is bad, unacceptable, or forbidden behavior.Ethical

, as well as shared beliefs regarding standards of behavior expected or

s about obligatory and forbidden conduct in a written set of principles,

munity members and can help clarify the code of ethics.

a framework of practice and behavior that underpins community trust,

ized expert knowledge, and often a focus on ethical behavior and service to
cs:

havior of members.
nts, prospective clients, employers, employees, colleagues in the

sonal interests.

ent analysis, making investment recommendations, taking investment

redit on themselves and the profession.

mpetence of other investment professionals.

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