Ethical and professional standards

Question 1

Definition of Ethics and Standards of Conduct

Answer 1

> moral principles + rules of conduct
provide guidance for behavior

Question 2

code of ethics

Answer 2

> created by communities and societal groups
beliefs about obligatory and forbidden conduct

Question 3

standards of conduct

Answer 3

> expansion on a code of ethics
identifying explicit benchmark behaviour
clarifying the code of ethics

Question 4

A Profession is..

Answer 4

> specialised knowledge and skills
service to others
members who share and agree to follow a common code of ethics

Question 5

Customer

Answer 5

> purchases goods or services in a series of transactions in
return for payment
Rel/ship based on transaction

Question 6

Client

Answer 6

> a continued relationship with the professional
clients benefits form expertise of proff for their benefit (maybe fee)
rel. based on trust - clients interest above proff/als

Question 7

how do professionals establish trust?

Answer 7

> normalize practitioner behavior
Provide a service to society
client focussed
high entry standards
expert knowledge
continuous education
Monitoring professional conduct
collegial
oversight bodies
engagement of members

Question 8

Challenges to Ethical Conduct

Answer 8

> overconfidence - overestimate the morality of our behavior + behavioral bias

> situational influences (e.g. environmental or cultural) - more likely to lead to unethical behavior than internal traits or character
- Financial Reward
- Prestige
- Loyalty
- Strong Compliance Culture

Question 9

Ethical vs. Legal Standards

Answer 9

laws:
> Typically follow market practices
> Take time to enact
> Can be vague, conflicting and too narrow
> subject to interpretation and compliance
> Vary across jurisdictions
> can create unethical opportunities

Question 10

Ethical Decision-Making Frameworks

Answer 10

1. Identify (Facts, stakeholders, ethical ppls, legal requirements, conflicts of interest)
2. Consider (Situational Influences, Personal behavioural biases, additional
   guidance)
3. Decide and Act
4. Reflect (decision vs.outcome, for future
   improvements to be
   made)

Question 11

CFA cannot be used as a

Answer 11

noun