- CFA Exams
- 2021 CFA Level I Exam
- Study Session 1. Ethical and Professional Standards
- Reading 1. Ethics and Trust in the Investment Profession
- Subject 4. The Importance of Ethical Conduct in the Investment Industry
CFA Practice Question
High standards for ethical conduct in the investment industry are so important because the industry is based almost entirely on the ______.
B. trust of clients
C. competency of investment professionals
A. specialized skills and knowledge of investment professionals
B. trust of clients
C. competency of investment professionals
Correct Answer: B
The higher the level of trust in the financial system, the broader the participation in the financial markets.
User Contributed Comments 5
| User | Comment |
|---|---|
| better1by1 | i didn't get it why just clients |
| khalifa92 | without clients money from wherth ? |
| Antoinepo | It's because clients are the source of wealth, without them there would be no money to invest/manage |
| pigletin | disagree. There will be no trust without specialized skills |
| KikeAjose | I also disagree because specialized skills also important. |