Ethics Flashcards
What is ethics?
System of principles, beliefs, values that guide our behaviour
What are principles?
Fundamental truths
What are beliefs?
An idea about the way things should be
What are values?
Goals or ideals we decided benefit society as a whole
Who is stakeholder?
A specific group within a society
What is code of ethics
Written set of principles that represents group’s specific beliefs
What is bias?
Poor decision driven y poor judgement
Bystander effect?
Failure to offer help when someone is nwarby
3 types of trust
- client advisor relationship. - info knowledge asymmetry meaning you need to trust that advisors won’t misuse knowledge in relationship
Steps in making ethical decisions?
Identify facts of the situation as well as potential conflicts of interest; consider potential alternatives; decide and act; reflect
Where can inquiries for professional conduct program come from?
Members and candidates when they fill out self disclosure form; from written complaints received by professional conduct staff; from the media; by conducting analysis of exams and scores
What does an investigation include?
Written explanation from the member; interview with the member or candidate; collection of documents and records for investigation
What is the result of investigation?
Take no disciplinary action; issue a cautionary letter; continue the case
What can member do if staff believes there is violation?
- Accept the charges
- Deny the charges; if deny the charges, the matter is transferred to DRC-disciplinary review committee
What kind of sanctions are expected?
Public censure, suspension and revocation of a license
Why do ethics matter?
Because they provide moral principles or rules of conduct that provide guidance for our behaviour when it affects others
What are 6 components of code of ethics?
- act with integrity, competence and diligence
- place integrity of investment position and interest of clients before personal interests
- use reasonable care and independent profess. Judgement
- practice in a professional and ethical manner
- promote integrity and viability of capital markets
- maintain and improve professional competence of you and your colleagues
What are 7 standards of professional conduct?
- Professionalism
- Integrity of capital markets
- Duties to clients
- Duties to employers
- Investment analysis
- Conflict of interest
- Responsibility as a cha institute member
What is section A of Standard 1: Professionalism?
Knowledge of the law: members must comply and understand the current laws. In the case of conflict between regulations, the stricter one applies. Also if a member participates with another member: client pr employer that violate a rule they are liable as well.
What are recommended procedures for compliance?
To stay informed, review procedures and maintain current files. If they know that employer is violating a rule, they should dissociate with the org.
What is part B of section 1?
Independence and objectivity: modest gifts are acceptable but should be made aware to the employer. Transportation at your own expense should be used to maintain objectivity.
What are recommended guidelines to comply with part B of section 1?
Protect integrity of opinion, create a restricted list, restrict special costs arrangement, limit gifts, restrict employer investments, review procedures
