CFA Level I · CFA Level I Exam · Ethics and Trust in the Investment Profession
Which statement about a firm's code of ethics is most consistent with the CFA Institute view on commitment to ethics by firms?
A code of ethics is necessary but insufficient. It is a critical first step, yet it must be integrated into the firm's culture of integrity; otherwise it risks becoming a largely ignored compliance document.
- AA code is necessary but insufficient without a culture of integrity.Correct
- BA written code alone is sufficient to ensure ethical conduct.
- CA code matters mainly for compliance and need not shape firm culture.
Explanation
The text says adopting a code is a critical first step but, while necessary, it is insufficient. A code that is not integrated into the business risks becoming a dusty compilation, so a culture of integrity must support it.
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