Introduction - Ethics

Ethics Intro Standards GIPS 10 Questions )Ethies 2) Ethical conduct 3) Code of ethics 4) Profesional code of ethics 3) Need for ethics Inv. indutry 6) Challenges to ethics 7) Etrieal Standards us Legal Standards 8) EDMF- ethical decision making framework. 9) рCР- рrofessional conduct program. ro) Code of Ethics 1) Ethics What is Set of Shared beliefs about good acceptable behav iour f what is bad /unacceptable behaviour T 2g: saying 1/sery ag: saying gaalie 3 Etrial Cendect, be haviour that Π follows meral Principles 4 is consistent with society's ethical expectation f: 1 day of articteship Also → it improves outcomes for Stakehalders → it balances self-interest with impact on others. eg secretly warking with coworker's client 3) Code of Ethies written set of moral principles that can guide behaviowr by deseribing 7 what is considered as st acceptable behaviour! Note: → Code of Ethics may have few OR rules tandards they require minimum level of ethical behaviowe. eg: Tata's → Code of Ethics 4) Projessional Code of Ethics isa way inwhich a profession Communicatee to public that its members will uщe knowledge Skill honest do serve clierts in Manner. ethical Note: → PCOE does not give a guarartee that members will follow it in ag: coe of CAS CA Act, 1949. 5) Need for ethies in Inv. industry. this indully acts as an intermediarybelween saves those se seeking invetmente. Hence; if people have:- lack of frust in financial advisors then people will feel scared giving ther money to fin advisors Role of r.e people will not rely on them mmcy then ress money will be invested then less money with companies ل economic growth will slowdown Trust in in industry is more important than any other industry.Note: Profesionale hold OR suitabidity standard fiduciary standard as per his find suitable inv avenue use expertise -age -inceme ete for client less strong & act in cdient's best interest more strong6) Challinges to Ethics Internal factors (personal facrars( External factorsituational pachors)means means individual traite f indiviedual traike Tk of you're i're an honest person- you won't get ingluened 6: -- loyalty towards co workets B youorwant to inmprers your bass - fnancial rewards Nofe: Internal f - less powerful Extemal f- more powerful Note: Profesionals should fous on not focus on 1 T what 1 shold what I can do do Ethics Ys Law) Ethics GM musder 7) Ethical Stde 3 Legal Stds Ethical * Things which are regal X eg: if my boss is not working w in cdient's best interest; and I complain about it illegal beuz put info of company leaked to gour (police) ethical beuz I am thinking about client's best inteest this is called whistle whistle-blowing eg: civil disobedience. Legal * Things whrich are ethical X eg: if I help my friend with inv recommendatione wfo dieclasuеite not illegs! but it wrethical.Nofe: < Ethical Prnciples Legal principles set higher Standand of behaviout than 27 Ethical Standarde reqiire more judgement than legal std.8) Ethical Decision Making Framework I ICDR identify couflict of int facts, duties, COI C consider enfluences, adioneD decide and act R reflect revien it says that: Ethice should be integrated in frm's decisien waking proces Chald-labous RIL Alitd 2121- Вт Росилетent Dept Bltd 715- 9) Professional conduct Program CPCP) if a mie is accused of professional misconduct then a the procedure of proceeding? is mentioned in PCP BOG ensures confidentiatity of proceedings. li.e 3 thing 1 个 DRC PC stafb Lie Live Board of Disciplinary ProfessionalGovernors Review Conduct Committee staff work work work Overall responsibility responsebility of PCP of enforcing code Stds what ic tafe Loe? Step 1: Consider 5 circumstances if any 1 of 5 occur thien go to step 2 C by mic 17 self discлоиrе in annual PCS of in volvemert in itigation /investigation complaintwritfon 2) Someone else Complaint PC staff I about MC 37 releases Media evidence ☑ Public at large of by mis conduct MIC 4 CFA exam proctor issues report about possible violation during exams. (s CFA institite nomtars social media 1 beu2 alleges analysis g exam! Step2: Inquily 1 ↓ demand a interview Colleet written documents explanation Suspeets 3 party related to for the act (anyone lle) inquiry Step 3: Decision No issue a Yes discdiplinay sandion caudionary diselipinaryletter sanction in case of member thismay leadto condemnation by peers public censwre candidate- suspension prom furtherpaiticipation. thus; when M/c receve sarctionMlc ither accept it or reject it in this Case there will be a heaiing at dis plinary review panel Note: There is no provisiòn for fine here Note: PCS professional conduct statement. in case of mhercandidate 2) 1) once when you become CFA member; you submit ics form And then, every year they submit PCS form along with annual membership renewal prоcеs if not done; then membershig car be suspended. its attached with exаm ferm 1every time you registerT you fil it if not done; then candidate can be pronibited from exam. 10) Cate of Ethice 6pte