CFA Level I · CFA Level I Exam · Ethics and Trust in the Investment Profession
According to the CFA Institute, the single most important factor in promoting ethical behavior among a firm's employees is most likely:
The most important factor is a strong culture of integrity that senior management develops, maintains and demonstrates. Employees' natural desire to do the right thing must be reinforced by that workplace culture, beyond just rules or incentives.
- Aa strong culture of integrity developed, maintained and demonstrated by senior managementCorrect
- Bthe size of the compliance department and its monitoring budget
- Cthe level of bonuses paid for meeting profit targets
Explanation
The text states that development, maintenance and demonstration of a strong culture of integrity by senior management may be the single most important factor in promoting ethical behavior. Compliance size and bonuses are not identified this way.
Did you get it right without looking?
One question tells you little. A timed set on Ethics and Trust in the Investment Profession shows your real accuracy, how long you take and where you lose marks.
More Ethics and Trust in the Investment Profession questions
- According to the CFA Institute's view of ethics and the investment industry, compliance with regulation alone is most likely:
- According to the Preamble to the CFA Institute Code of Ethics and Standards of Professional Conduct, the personal responsibility to embrace …
- Which of the following is most likely a benefit that efficient capital markets provide to those supplying investment capital?
- According to the CFA Institute materials on applying an ethical framework, an investment professional who faces an ethical dilemma without a…
- A fund manager states that compliance with all applicable regulations is sufficient to earn the trust of investors. Which response is most c…
- According to the CFA Institute materials on applying an ethical framework, an ethical decision-making framework is most likely intended to h…