Reading 1 - Ethics and Trust in the Investment Profession

LOS

a. explain ethics 115.010.10.10 Reading 1 - Ethics and Trust - LOS a. explain ethics

b. describe the role of a code of ethics in describing a profession 115.010.10.20 Reading 1 - Ethics and Trust - LOS b. the role of a code of ethics

c. describe professions and how they establish trust 115.010.10.30 Reading 1 - Ethics and Trust - LOS c. professions establishing trust

d. describe the need for high ethical standards in investment management 115.010.10.40 Reading 1 - Ethics and Trust - LOS d. the need for ethical standards

e. explain professionalism in investment management 115.010.10.50 Reading 1 - Ethics and Trust - LOS e. professionalism in investment

f. identify challenges to ethical behavior 115.010.10.60 Reading 1 - Ethics and Trust - LOS f. challenges to ethical behavior

g. distinguish between ethical and legal standards 115.010.10.70 Reading 1 - Ethics and Trust - LOS g. ethical and legal standards

h. describe a framework for ethical decision making 115.010.10.80 Reading 1 - Ethics and Trust - LOS h. framework for ethical decisions

Practice test results

I read this Reading in 2 days. Now taking the practice quiz at the end of the Reading and recording my actual score here.

``` SCORE = 10/12 (83.3%)

Q A 1/0 1 A 0 I chose CoE, correct answer was Standards of Conduct 2 B 1 3 A 1 4 B 1 5 B 1 6 C 1 7 B 1 8 C 1 9 C 1 10 B 1 11 A 0 12 C 1 ```

Wrong answers and their correct answers:

Q1: Benchmarks for minimally acceptable behaviors of community members are: a. code of ethics b. laws and regulations [c]. standards of conduct. > I chose (a), but that is not correct. The Code of Ethics serve as a general guide for how community members should act. It is the Standards of Conduct that serve as benchmarks.

Q12: To maintain trust, the investment management profession must be interdependent with: a. regulators b. employers [c]. investment firms > I chose (a), which is incorrect. Employers and regulators have their own standards and practices which may differ from regulations and standards set by professional bodies.