Skip to content

CFA Level I · CFA Level I Exam · Guidance for Standard II: Integrity of Capital Markets

An analyst in a country with weak market regulation argues that local custom permits practices that would breach the Code and Standards. Which view is most consistent with the CFA Institute's position on global ethics?

Ethics for a global investment industry should be universal, supporting trust and integrity above local or regional customs and culture. Countries may differ in how developed their standards are, but the goal is rules and standards that promote fundamental ethical principles worldwide.

  1. ALocal custom should take priority because standards of practice develop at different rates
  2. BEthics should be universal and support trust and integrity above local or regional customs and cultureCorrect
  3. CEthics should apply only to members working in highly regulated markets

Explanation

The text says ethics for a global industry should be universal and support trust and integrity above acceptable local or regional customs. Countries may be at different stages of developing standards, but the end goal is fundamental ethical principles globally. Option A misreads the point about differing stages.

Did you get it right without looking?

One question tells you little. A timed set on Guidance for Standard II: Integrity of Capital Markets shows your real accuracy, how long you take and where you lose marks.

Practise Guidance for Standard II: Integrity of Capital MarketsFree diagnostic mock

More Guidance for Standard II: Integrity of Capital Markets questions