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

According to the CFA Institute materials on applying an ethical framework, an ethical decision-making framework is most likely intended to help investment professionals:

An ethical decision-making framework helps investment professionals examine their conduct amid conflicting interests and apply the principles of the firm's code of ethics. It does not guarantee profit or replace individual judgment, which the materials call a critical ingredient in making principled choices.

  1. Aguarantee that every decision maximizes firm profit
  2. Bexamine their conduct in light of conflicting interests and follow the principles of the firm's code of ethicsCorrect
  3. Creplace the need for individual judgment with fixed rules

Explanation

The text says a framework helps professionals examine conduct amid conflicting interests and follow the firm's code of ethics principles. It supplements, not replaces, individual judgment, and it adds an ethical view to the profit/loss outlook rather than maximizing profit.

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