CFA Level I · CFA Level I Exam · Ethics and Trust in the Investment Profession
According to the CFA Institute's view of ethics and the investment industry, compliance with regulation alone is most likely:
Compliance with regulation alone is insufficient to fully earn investor trust. Individuals and firms must also build a culture of integrity that promotes stewardship of investor assets and working in clients' best interests, going above and beyond strict compliance with the law.
- Asufficient to earn investor trust
- Binsufficient to fully earn investor trustCorrect
- Crequired only where local customs allow it
Explanation
The text states that global capital markets are highly regulated, yet compliance with regulation alone is insufficient to fully earn investor trust. Firms and individuals must also develop a culture of integrity that goes above and beyond strict compliance with the law. The first option contradicts this directly.
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