Ethics

Question 1

What is ethics?

Answer 1

System of principles, beliefs, values that guide our behaviour

Question 2

What are principles?

Answer 2

Fundamental truths

Question 3

What are beliefs?

Answer 3

An idea about the way things should be

Question 4

What are values?

Answer 4

Goals or ideals we decided benefit society as a whole

Question 5

Who is stakeholder?

Answer 5

A specific group within a society

Question 6

What is code of ethics

Answer 6

Written set of principles that represents group’s specific beliefs

Question 7

What is bias?

Answer 7

Poor decision driven y poor judgement

Question 8

Bystander effect?

Answer 8

Failure to offer help when someone is nwarby

Question 9

3 types of trust

Answer 9

• client advisor relationship. - info knowledge asymmetry meaning you need to trust that advisors won’t misuse knowledge in relationship

Question 10

Steps in making ethical decisions?

Answer 10

Identify facts of the situation as well as potential conflicts of interest; consider potential alternatives; decide and act; reflect

Question 11

Where can inquiries for professional conduct program come from?

Answer 11

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

Question 12

What does an investigation include?

Answer 12

Written explanation from the member; interview with the member or candidate; collection of documents and records for investigation

Question 13

What is the result of investigation?

Answer 13

Take no disciplinary action; issue a cautionary letter; continue the case

Question 14

What can member do if staff believes there is violation?

Answer 14

1. Accept the charges
2. Deny the charges; if deny the charges, the matter is transferred to DRC-disciplinary review committee

Question 15

What kind of sanctions are expected?

Answer 15

Public censure, suspension and revocation of a license

Question 16

Why do ethics matter?

Answer 16

Because they provide moral principles or rules of conduct that provide guidance for our behaviour when it affects others

Question 17

What are 6 components of code of ethics?

Answer 17

• 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

Question 18

What are 7 standards of professional conduct?

Answer 18

1. Professionalism
2. Integrity of capital markets
3. Duties to clients
4. Duties to employers
5. Investment analysis
6. Conflict of interest
7. Responsibility as a cha institute member

Question 19

What is section A of Standard 1: Professionalism?

Answer 19

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.

Question 20

What are recommended procedures for compliance?

Answer 20

To stay informed, review procedures and maintain current files. If they know that employer is violating a rule, they should dissociate with the org.

Question 21

What is part B of section 1?

Answer 21

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.

Question 22

What are recommended guidelines to comply with part B of section 1?

Answer 22

Protect integrity of opinion, create a restricted list, restrict special costs arrangement, limit gifts, restrict employer investments, review procedures