Chapter 1: Ethics and Trust in the Investment Profession

In this section

• Defining Ethics and the Importance of Trust
  Defining Ethics and the Importance of Trust (CFA Level 1): Understanding Ethics in Finance, Why Trust Matters, and Cost of Ethical Lapses. Key definitions, formulas, and exam tips.
• Codes of Ethics and the Investment Profession
  Codes of Ethics and the Investment Profession (CFA Level 1): What Is a Code of Ethics?, Why Codes of Ethics Matter in the Investment, and Comparing Different Codes and Aligning with Core Values. Key definitions, formulas, and exam tips.
• The Need for High Ethical Standards in Finance
  The Need for High Ethical Standards in Finance (CFA Level 1): Intermediary Role of Finance and Its Ethical, Unethical Practices and Their Impact, and Quick Numeric Illustration. Key definitions, formulas, and exam tips.
• Differences Between Ethical and Legal Standards
  Differences Between Ethical and Legal Standards (CFA Level 1): Comparing Ethical and Legal Standards, Letter of the Law vs. Spirit of the, and Why Ethical Standards Often Outpace Legal Requirements. Key definitions, formulas, and exam tips.
• Challenges to Ethical Behavior
  Challenges to Ethical Behavior (CFA Level 1): Key Factors Impeding Ethical Decision-Making, Self-Interest Bias, and Group Pressure. Key definitions, formulas, and exam tips.
• Ethical Decision‑Making Frameworks
  Ethical Decision‑Making Frameworks (CFA Level 1): Fairness, Transparency, and Accountability, Practical Steps in an Ethical Decision-Making Framework, and Step 1: Identify the Facts. Key definitions, formulas, and exam tips.
• The Influence of Globalization on Ethical Perspectives
  The Influence of Globalization on Ethical Perspectives (CFA Level 1): Complexity of Cultural and Regulatory Overlaps and Cultural Relativism vs. Universal Ethical Principles. Key definitions, formulas, and exam tips.