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Subject 2. Ethics and Professionalism PDF Download
A profession is:

  • based on specialized knowledge and skills.
  • based on service to others.
  • practiced by members who share and agree to adhere to a common code of ethics.

A profession's code of ethics:

  • communicates the shared principles and expected behaviors of its members.
  • generates confidence not only among members of the organization but also among non-members (clients, prospective clients, and/or the general public).

A profession may adopt standards of conduct to enhance and clarify the code of ethics.

High ethical standards are important for the investment industry and investment professionals. This is because the industry is built almost entirely on trust. Trust is important in the investment industry for several reasons:

  • The nature of the client relationship
  • Differences in knowledge and access to information
  • The nature of investment products and services

Clients must trust investment professionals to use their specialized skills and knowledge to serve clients and protect client assets. All stakeholders will gain long-term benefits when investment professionals adhere to high ethical standards.

Learning Outcome Statements

b. describe the role of a code of ethics in defining a profession;

c. describe professions and how they establish trust;

d. describe the need for high ethical standards in investment management;

e. explain professionalism in investment management;

CFA® 2022 Level I Curriculum, , Volume 6, Reading 56

User Contributed Comments 2

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fanqc specialized knowledge and skills ( trust)
not exchange for payment.
Nduwino Hello
I am interested in these notions. Could you send me via my email provided the whole detailed documentation?
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

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