- CFA Exams
- CFA Exam: Dec. 2020 Level 1
- Study Session 1. Ethical and Professional Standards
- Reading 2. Code of Ethics and Standards of Professional Conduct
- Subject 2. The Six Components of the Code of Ethics
CFA Practice Question
There are 361 practice questions for this study session.
A. competence and independent judgment
B. integrity and respect
C. the importance of contractual obligations
User Contributed Comments 23You need to log in first to add your comment.
it is ethical to keep in mind the contractual obligations as well.why doesnt the code of ethics talk about it then?
why don't you give CFA Institute a call and ask?
because sometimes contract obligation is in conflict with ethics.
i think in this question: A B can find immediately in Code. and C i have't seen, so the answer must be C.
Ethics should be above the contractual obligations
ethics has more sanctity in it. There could be contractual obligations which may not be ethical. Ethics refers to high standard of professional practise and execution
i agree with all the comments above
in business ethics should be maintained but contractual obligations cannot be denied.
contratual obligations are relative
Ethics is moral principles or it is belief but contractual obligation is a responsibility
I think a little common sense goes a long way.
a contractual obligation in business is defined by the parties involved allowing latitude in the way business is done, while ethics is universal.
Ethics above Contractual Obligation
Contractual Obligation can ask for some unethical step, which should not motivated
Contractual obligations may or may not be ethical.
for me, contractual obligations is beyond the scope of the code of ethics because contractual obligations are govern by the the state law, therefore, may produce conflict between the two.
so RESPECT is the part of ethical code
It's a typical Q for CFA.
My advice to all candidates: If you intend to finish the entire syllabus i.e. all 67 Readings, skip the comments section, especially if you got the answer right.
What you'll commonly see is "Why A?" "Why not B?" "Answer is wrong." "Can someone please explain?"
Trust me... it's a waste of time. Only look for useful comments when you got the answer wrong. Those are VERY HELPFUL. Otherwise, skip, skip, skip!
Guys, read the question. It's asking what the code SPECIFICALLY ADDRESSES. It does not ask you to analyze if contractual obligations should or shouldn't be included in the code, or if they are or aren't ethical. Read for detail. Does the code specifically address contractual obligations? No. That's your answer. Move on.
@johntan1979. Will do. thank you so much.
johntan1979, very true, thanks.
@johntan1979 sometimes reading comments is fun, lol.