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

Which statement about ethics for a global investment industry is most accurate?

Ethics for a global investment industry should be universal and support trust and integrity above acceptable local or regional customs and culture. Countries may be at different stages, but the goal is standards that promote fundamental ethical principles worldwide.

  1. AEthics should be universal and support trust and integrity above acceptable local customsCorrect
  2. BEthics should follow the local custom in each country where a firm operates
  3. CEthics should be set by each firm according to its own stage of development

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. Countries may be at different stages of developing standards, but the end goal is fundamental ethical principles on a global basis. Deferring to local custom contradicts this.

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