Trust in Investment Management Quiz

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What is one similarity between investment management professionals and professionals in longer-established professions like medicine and law?

They have similar educational backgrounds
They are trusted to draw on a body of formal knowledge (correct)
They work longer hours
They have similar job titles

What is an expectation of investment professionals in comparison to their clients?

Similar financial expertise
Superior financial expertise (correct)
No financial expertise
Limited financial expertise

Why must investment management professionals handle and fully disclose conflicts, risks, and fees to clients?

In a way that serves the best interests of clients (correct)
To confuse clients
To hide information from clients
To benefit themselves

What is essential for investment management professionals in terms of compliance?

Compliance with codes of ethics and professional standards (C) Signup and view all the answers

Why must the investment management profession and investment firms be interdependent?

To maintain trust (C) Signup and view all the answers

Who typically directs professionals in how to resolve differences between employers, regulators, and professional bodies?

Investment management professional bodies (B) Signup and view all the answers

In many developed economies, what aspects of the economy does the investment management profession affect?

Savings, retirement planning, and the pricing and allocation of capital (A) Signup and view all the answers

What must investment management professionals practice guided by?

Care, transparency, and integrity (A) Signup and view all the answers

What is a risk related to clients' awareness in investment management?

Clients may not be fully aware of conflicts, risks, and fees involved (A) Signup and view all the answers

What is the role of employers and regulators in relation to standards and practices?

They have their own standards and practices that may differ from regulations and standards set by professional bodies (B) Signup and view all the answers

What is the impact of the investment management profession in developed economies?

Affects savings, retirement planning, and the pricing and allocation of capital (D) Signup and view all the answers

What is the expectation regarding the knowledge applied by investment management professionals?

Apply knowledge with care and judgement (D) Signup and view all the answers

What is one of the main benefits of skilled evaluation of securities in most countries?

More efficient capital allocation (B) Signup and view all the answers

What is the primary mission of CFA Institute?

To lead the investment profession globally by promoting high standards (D) Signup and view all the answers

In what decade did CFA Institute begin its expansion beyond North America?

1980s (C) Signup and view all the answers

What significant governance standard change did CFA Institute implement in 2015?

Adoption of US Public Company Standards (C) Signup and view all the answers

What is the duty of an investment management professional when client interests conflict with market interests?

Set market integrity as the overriding obligation (B) Signup and view all the answers

What ongoing process ensures the CFA Institute's body of knowledge remains current and globally relevant?

Practice analysis (C) Signup and view all the answers

What is the purpose of the CFA Program for candidates?

To ensure mastery of core competencies (A) Signup and view all the answers

What type of research does CFA Institute contribute to with its publications?

New research and ideas in finance (D) Signup and view all the answers

How does CFA Institute support local societies in engaging charterholders?

By assisting with continuing education programs (A) Signup and view all the answers

What are CFA charterholders and candidates required to do annually concerning the Code and Standards?

Sign a statement attesting to adherence (B) Signup and view all the answers

What is the relationship between CFA Institute and the investment management profession?

CFA Institute is a professional body for investment management professionals (C) Signup and view all the answers

What is the role of CFA Institute in terms of advocacy?

Building market integrity through regulation (B) Signup and view all the answers