50 Questions
What is the process through which the CFA Institute updates its Global Body of Investment Knowledge (GBIK) and Candidate Body of Knowledge (CBOK)?
Practice analysis
What does the CFA Program ensure for candidates?
Mastery of core knowledge, skills, and abilities necessary for investment professionals
How does CFA Institute contribute to the dissemination of new research and ideas in finance?
Publication of the Financial Analysts Journal
What does a local CFA society provide for charterholders?
Continuing education programs and events
What are CFA charterholders and CFA Program candidates required to adhere to?
The Code and Standards
What does the CFA Institute encourage charterholders to do?
Engage in their professional communities
What is the CFA Institute Research Foundation involved in?
Publishing books, research briefs, and reviews
What is the importance of a local CFA society for CFA charterholders?
Maintaining professionalism and continuing professional development
What is the aim of charterholders and candidates according to the text?
Maintain and improve their professional competence
What does the CFA Institute ensure through its rigorous examinations?
Mastery of necessary competencies by candidates
When was a significant step for the investment management profession established?
With the publication of Graham and Dodd's Security Analysis in 1934
What do clients expect from investment professionals?
Superior financial expertise and technical knowledge
Which institute is the largest body for investment management professionals?
CFA Institute
What is essential for investment management professionals to maintain trust?
Compliance with codes of ethics and professional standards
Why is the investment management profession considered increasingly global?
Due to the opening of capital markets and regulatory coordination across borders
What aspect of the economy is affected by the investment management profession?
Savings, retirement planning, and capital allocation
What is the mission of the CFA Institute?
Promoting the highest standards of ethics, education, and professional excellence
What do investment management professionals need to practice in most countries?
Some form of certification or licensing
How do investment management professionals earn trust?
By applying formal knowledge with care and judgment
What challenges the trust and commitment to high ethical standards in investment management?
Not all practitioners being professionals
What can force professions to adapt to change?
Greater transparency and public accountability
Why do professions engage with non-member individuals?
To evaluate the viewpoints of the public, clients, or other stakeholders
What is a reason for professions to actively learn from other professions?
To improve standards of conduct and ethics
Why may a profession need to be reviewed by a government agency or independent public body?
To ensure accountability and adherence to regulations
What encourages public trust for a profession’s conduct and disciplinary process?
Engagement with non-member individuals
What is a common trend that forces professions to adapt to change?
Technology opens up possibilities for new services
Why do effective professions continue to develop their role?
To account for changing best practices
What may happen as the requirements for a profession evolve?
Gaps may open up that take time to remedy
Why do professions often engage with non-member individuals?
To evaluate the viewpoints of the public, clients, or other stakeholders
What is an example of professions learning from each other?
New standards of conduct in the accounting profession influencing standards in investment management
What was a significant step in the establishment of key elements of the investment management profession?
Publication of Graham and Dodd’s Security Analysis in 1934
What is a requirement in most countries to practice investment management?
Certification or licensing
What are investment management professionals trusted to draw on and apply with care and judgment?
Formal knowledge
What is essential for investment management professionals in terms of compliance and integrity?
Compliance with codes of ethics and professional standards, transparency, and integrity
What has the CFA Institute initiated changes in line with?
The growth of investment management
What does the investment management profession affect in the economy?
Key aspects such as savings, retirement planning, and capital allocation
What is the mission of the CFA Institute?
To lead the investment profession globally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society
What do clients expect from investment professionals in terms of expertise and knowledge?
Superior financial expertise, technical knowledge, and knowledge of applicable laws and regulations
What is the CFA Institute's role in the investment profession?
Promoting the highest standards of ethics, education, and professional excellence
What is the investment management profession still developing in terms of practice and codes?
Its practice and codes
What forces professions to adapt to change?
Greater transparency and public accountability
Why do professions engage with non-member individuals?
To evaluate viewpoints of the public, clients, or other stakeholders
What may take time to remedy as the requirements for a profession evolve?
Gaps in the profession
What do effective professions actively learn from other professions, particularly in the area of?
Ethics
What opens up possibilities for new services and different ways of working?
Technology
What encourages public trust for a profession’s conduct and disciplinary process?
Engaging with non-member individuals
What can help a profession evaluate the viewpoints of the public, clients, or other stakeholders?
Engaging with non-member individuals
What might be an influence on standards considered in investment management?
New standards of conduct in the accounting profession
What are some of the trends that force professions to adapt to change?
Greater transparency and public accountability
What is a key process that may need to be reviewed by a government agency or independent public body?
Responsibilities of a profession
Study Notes
Professionalism and Trust in Investment Management
- Investment management is a relatively young profession still developing its practice and codes
- Not all practitioners are professionals, which challenges gaining trust and commitment to high ethical standards
- Key elements of the profession have been established over several decades, with the publication of Graham and Dodd’s Security Analysis in 1934 being a significant step
- Most countries require some form of certification or licensing to practice investment management
- Investment management profession is on a journey to improve implementation and keep up with changing demands
- The profession has become increasingly global due to the opening of capital markets and regulatory coordination across borders
- Investment management professionals are trusted to draw on formal knowledge and apply it with care and judgment, similar to doctors and lawyers
- Clients expect investment professionals to have superior financial expertise, technical knowledge, and knowledge of applicable laws and regulations
- Compliance with codes of ethics and professional standards, transparency, and integrity are essential
- Investment management profession affects key aspects of the economy, including savings, retirement planning, and capital allocation
- CFA Institute is the largest body for investment management professionals and has initiated changes in line with the growth of investment management
- CFA Institute's mission is to lead the investment profession globally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society
Test your knowledge on professionalism and trust in investment management with this quiz. Explore key elements of the profession, certification requirements, global impact, and the role of organizations like the CFA Institute in promoting ethical standards and professional excellence.
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