Professional Ethics in Finance

Question 1

what are Ethics?

Answer 1

A set of moral principles or rules of conduct that provide guidance for our behaviour when it affects others.

Question 2

what are the Fundamental ethical principles?

Answer 2

– Honesty
– Fairness
– Diligence
– Care and respect for others

Question 3

why is Unethical conduct from investment professionals so bad?

Answer 3

– not only has serious personal consequences
– but damage investor trust and thereby impair the sustainability of the global capital markets as a whole.

Question 4

why do ethics matter?

Answer 4

A strong ethical culture that helps honest, ethical people engage in ethical behaviour will foster the trust of investors, lead to robust global capital markets, and ultimately benefit society.

Question 5

What are The Code of Ethics?
(6 points )

Answer 5

Act with integrity, competence, diligence, and respect and in an ethical manner with the public, clients, prospective clients, employers, employees, colleagues in the 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 investment recommendations, taking investment 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 the profession.

Promote the integrity and viability of the global capital markets for the ultimate benefit of society.
Maintainandimprovetheirprofessionalcompetence and strive to maintain and improve the competence of other investment professionals.