Page 11 - FINAL CFA SLIDES JUNE 2019 DAY 1
P. 11
Ethics and Trust in the Investment Profession
LOS 1.e: Distinguish between ethical and legal standards.
Not all unethical actions are illegal, and not all illegal actions are unethical.
• Not recusing from conflict of interest may be legal but unethical
• Civil disobedience may be illegal but ethical.
Laws are more specific than ethical principles and often address prior unethical behavior.
Ethics normally sets a higher standard so always go for it but keep an open mind!
LOS 1.f: Describe and apply a framework for ethical decision making.
Step 1: Identify: Relevant facts, stakeholders and duties owed, ethical principles, conflicts of interest.
Step 2: Consider: Situational influences, additional guidance, alternative actions, including unintended consequencies.
Step 3: Decide and act.
Step 4: Reflect: Was the outcome as anticipated? Why or why not?
