code of ethics

CFA Level I Ethics
#1

Hi,

I just did a schweser mock exam, kind of disapointed until now but yeah:

I have a question regarding ethics and I don’t understand Schweser’s answer:

Which of the following is least likely included in the CFA Code of Ethics? Members of CFA Institute must:

A) place their clients’ interests before their employer’s interests. B) strive to maintain and improve the competence of others in the profession. C) use reasonable care and exercise independent professional judgment.

Don’t understand why the correct answer is A. When I go on CFAI’s website, it’s clearly written that place the interest of your client first belongs to the code of ethics

https://www.cfainstitute.org/ethics/codes/ethics/Pages/index.aspx

Your help would be much appreciated.

Thanks

#2

Sounds wrong.

I’d check Schweser’s errata.

#3

Thanks s2000magician! Will definitely do it

#4

I would choose B as the correct answer, we are not bound to improve others’ competence or skills, instead we are encouraged to promote good professional ethics.

#5

in the CFAI’s book, it’s written:

  • Maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals.

Seems to be a mistake from Schweser…

#6

I will go for C, using reasonable care and excercising independent judgement is part of the Standards of Professional Conduct and not Code of Ethics. So Schweser definitely made a mistake there. Check Errata for likely reconciliation.

#7

I think the correct answer is C since it is taken from the Standards.

Standards and the Code are distinct.

#8

A is actually the correct answer. The code is “Place the integrity of the profession and the interests of clients above your own interests”.

This may sound stupid but still, the code says you have to place the interests of the clients ahead of YOURS and not the employers. Thats why its A.

Also within standards of practice, Duties to clients, priority of transaction, thats where you would find the priority ie clients, employers and CFA candidate/member.

I know it can be frustrating that why does it matter if its you or employer since priority is till given to the client, but thats how it is. Wording of code of eithics and standards of practice are truly very important when answring questions on them.

#9

Schweser is actually right, i just took time to read the question again, and they are right. Option A is the correct answer and not B or C.

Waoo… this can be confusing sometimes.

#10

oh yes, I see now… was a tricky one because I read “place interest of the client before our interest” and not “before the interest of our employer”. It’s a perfect example of how we “biase” or “condition” our mind when we read something. I guess that’s what happened to me and to S2000magician :wink:

Thank you for your help!!

#11

true, it is a terrible question, and CFAI questions are going to be more clearer than soemthing like this question.