The Code Of Ethics And Its Ethical Standards

1311 Words Oct 1st, 2016 6 Pages
The formal definition of ethics is as follows, moral principles that govern a person’s behaviour or the conducting of an activity or alternatively the branch of knowledge that deals with moral principles. (Ethics definition: dictionary.com, 2014)
The Code and Standards where first created in the 1960s and have been updated regularly since then. The Code of Ethics is an ethical benchmark for investment professionals around the world. The standards have generally been adopted regardless of job function, cultural differences and various laws that differ from country to country. As a CFA member, you are obligated to adhere to the code and its ethical standards.
High ethical standards are imperative in preserving the public’s faith in economic markets and in the investments profession as a whole. CFA Institute members must follow the Code and Standards. If members do not abide by the code, sanctions may be imposed. Sanctions consist of cancelation of membership to the CFA institute, withdrawal of suitable candidacy in the CFA program, and lastly prohibition of use of the CFA (Chartered financial analyst) designation.
The updated aim of the Ethical Code and Professional Conduct is to guide the investment profession across the globe by promoting the highest standards of ethics, learning, and professional superiority, which ultimately benefits society. (CFA institute handbook, 2014)
The disadvantages of enforcing the code and its rules could be described as it is below.
Inequality:…
Open Document