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

An analyst works in a country where local custom permits practices that the CFA Institute Code and Standards would prohibit. The view of ethics for a global investment industry is most likely that the analyst should:

The analyst should follow the universal ethical principles supporting trust and integrity, placing them 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. Afollow the ethical principles that support trust and integrity, placing them above local customs and cultureCorrect
  2. Bfollow local custom, because countries are at different stages of developing standards
  3. Capply the Code only to the extent that local regulators have adopted it

Explanation

The text says ethics for a global industry should be universal and ultimately support trust and integrity above acceptable local or regional customs and culture. Differing stages of development are acknowledged, but the end goal is standards that promote fundamental ethical principles globally. The other options defer to local practice.

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