Lecture 1 Flashcards

1
Q

Ethics

A

Ethics are moral principles that govern a person’s behavior or their conduct

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2
Q

Inappropriate Behavior

A

Behavior that is not in keeping with the occasion, the time, or the place (not necessarily unethical, not illegal)

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3
Q

Illegal Behavior

A

Behavior or acts that contravene the laws of the jurisdiction in which the person acts (may or may not be unethical)

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4
Q

Immoral Behavior

A

Behavior that contravenes someone’s or some groups established and accepted practices or rules (not necessarily unethical and not necessarily illegal)

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5
Q

Unethical Behavior

A

Behavior that does not conform to acceptable standards of behavior in society or in a profession (not necessarily illegal)

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6
Q

Behavior is ______. It is _________

A

Chosen & Deliberate

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7
Q

Business Ethics

A

Implementation and control of appropriate business policies with regard to a company’s governance

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8
Q

How many government organizations regulate the financial services industry in Canada?

A

24+

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9
Q

Canada has no federal securities commission, each province has its own. True or False?

A

True

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10
Q

What is OSFI

A

Office of the Superintendent of Financial Institutions

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11
Q

What does OSFI do?

A

Regulates insurance companies, trust & loan companies

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12
Q

What is the CSA?

A

Canadian Securities Administrators

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13
Q

What does CSA do?

A

Regulates dealers, portfolio managers, and fund companies

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14
Q

CSA Mission?

A

Protect investors from unfair, improper or fraudulent practices

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15
Q

What is SRO?

A

Self-Regulatory Organizations

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16
Q

Intermediaries

A

Firms or individuals that act to bring other parties in a investment transactions

17
Q

Securities Exchange Acts of 1933 and 1934

A

Established the SEC, market regulations, audited financial statements

18
Q

Investor Advisors Acts and Investment Company Act of 1940

A

Individuals/Firms who seek compensation for advice and manage $25m+ are required to register with the SEC

19
Q

Rule 10b-5

A

Preventing manipulation of markets

20
Q

Sarbanes-Oxley Act of 2002 (SOX) / Public Company Accounting Reform and Investor Protection Act of 2002

A

Designed to enforce accountability for executives to increase disclosure and eliminate conflicts of interests

21
Q

Public Company Accounting Oversight Board (PCAOB)

A

A governmental body established by SOX to enforce new audit laws

22
Q

Fiduciary Duty

A

Duty when placed in a position of trust

23
Q

4 Fundamental Principles of Investment Ethics

A

Ethical Understanding
Ethical Use of Information
Responsible Investing
Trust and Fairness

24
Q

Moral Hazard

A

Parties do not fully bear the costs of their risk-taking behavior