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

An analyst says that because ethical choices in investing are sometimes ambiguous, a well-intentioned professional cannot be expected to cut corners. Which response is most consistent with the CFA Institute's commitment statement on ethics?

The best response is to disagree. CFA Institute notes that decisions are often not clearly right or wrong and that situational influences can overpower even the best intentions, so professionals should use resources and an ethical decision-making framework rather than rely on intentions.

  1. AAgree, because good intentions reliably prevent ethical lapses.
  2. BAgree, because ambiguity removes personal responsibility under the Code.
  3. CDisagree, because situational influences can overpower the best of intentions, so applying a decision-making framework matters.Correct

Explanation

The text says many decisions are not unambiguously right or wrong, even well-intentioned professionals may be tempted to cut corners, and situational influences can overpower good intentions. It encourages resources and peer discussion to apply an effective ethical decision-making framework. Options A and B contradict this.

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