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CFA Level I · CFA Level I Exam · Ethics and Trust in the Investment Profession

A firm operates in a country where local custom accepts practices that undermine market fairness. Under the CFA Institute view of ethics for a global investment industry, the firm's professionals should most appropriately:

They should support trust and integrity above local or regional customs and culture. Ethics for a global industry should be universal. Countries may be at different stages of developing standards, but the end goal is global rules supporting fundamental ethical principles.

  1. Afollow the local custom because countries are at different stages of standards development
  2. Bapply the stricter of local custom or global practice only when regulators require it
  3. Csupport trust and integrity above acceptable local or regional customs and cultureCorrect

Explanation

The text states that ethics for a global industry should be universal and support trust and integrity above acceptable local or regional customs and culture. Differing stages of development explain gaps in standards, but the end goal remains universal principles. Making ethics depend on regulator demands contradicts the idea of going beyond compliance.

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