CFA Practice Question

There are 361 practice questions for this study session.

The CFA Institute's Code of Ethics specifically addresses all of the following EXCEPT ______.

A. competence and independent judgment
B. integrity and respect
C. the importance of contractual obligations
Correct Answer: C

User Contributed Comments 23

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cheena

it is ethical to keep in mind the contractual obligations as well.why doesnt the code of ethics talk about it then?

Mimi

why don't you give CFA Institute a call and ask?

Steven

because sometimes contract obligation is in conflict with ethics.

Haiqing

i think in this question: A B can find immediately in Code. and C i have't seen, so the answer must be C.

Arron

Ethics should be above the contractual obligations

baple

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

maverickcfa

i agree with all the comments above

mngg

in business ethics should be maintained but contractual obligations cannot be denied.

awuzie

contratual obligations are relative

mpoki

Ethics is moral principles or it is belief but contractual obligation is a responsibility

redders

I think a little common sense goes a long way.

kshenoi

a contractual obligation in business is defined by the parties involved allowing latitude in the way business is done, while ethics is universal.

Yugo

Ethics above Contractual Obligation

jainrajeshv

Contractual Obligation can ask for some unethical step, which should not motivated

magicchip

Contractual obligations may or may not be ethical.

winniedpooh

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.

kforcfa

so RESPECT is the part of ethical code

AUAU

It's a typical Q for CFA.

johntan1979

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!

funny_val

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.

Inaganti6

@johntan1979. Will do. thank you so much.

cfastudypl

johntan1979, very true, thanks.

yesitan

@johntan1979 sometimes reading comments is fun, lol.