FINS1612 Lecture Notes - Lecture 5: Ethical Decision, Cfa Institute
Document Summary
Learning objectives: what is ethics, why do we need ethics in finance industry, what are the issues, cfa code of ethics and standards of professional conduct, ethical decision framework. A set of guiding moral principles or values (cid:862)ethi(cid:272)al beha(cid:448)iour(cid:863) Refers to behaviour that conforms to those values: both terms are often used to imply. Factors affected by ethical standards in the investment profession: high ethical standards. Law and regulations help, but, not sufficient to protect the financial system. Law & regulations may not extend to all areas of finance. They are often slow to catch up with market innovations. Different jurisdictions, inconsistencies in legal obligation in different countries. Situation may arise where no applicable law or existing law is inadequate. Up to interpretation: ethical standards is particularly apparent in situation where vague or ambiguous legal rules leave room for unethical discretion.
