The Leader in CFA® Review
  1. CFA Exam: June 2020 Level I
  2. Study Session 1. Ethical and Professional Standards
  3. Reading 1. Ethics and Trust in the Investment Profession
  4. Subject 4. The Importance of Ethical Conduct in the Investment Industry
  5. Practice Question
Basic Question
High standards for ethical conduct in the investment industry are so important because the industry is based almost entirely on the ______.

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

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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.