Study Session 1 ： Ethical and Professional Standards

所有章节的学习分为三个步骤。
1. 考纲分析，根据考纲理出待掌握知识点
2. 阅读理解，以 Notes 为主
3. 课后习题

考纲分析

    将2017年考纲与2016年考纲进行对比，2017年新增了 Reading 1 Ethics and Trust in the Investment Profession

Reading 1 Ethics and Professional Trust in the Investment Profession

考纲知识点

    1. Explain ethics
    2. Describe the role of a code of ethics in defining a profession
    3. Identify challenges to ethical behavior
    4. Distinguish between ethical and legal standard
    5. Describe the need of high ethical standards in the investment industry
    6. Describe and apply a framework for ethical decision making

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阅读笔记

Introduction

    1. 概念：下定义（什么是道德）、正面阐述（道德的角色）、反面解释（识别挑战道德的行为）、同异分析（道德与法规）、重要性（必须性）、方法论（有道德的决策框架）
    2. 为什么要学习道德？
        从业者不是简单的遵守法律法规，因为法律法规有可能空缺、冲突、不清晰；因此一个从业者应该愿意并能够运用自己的知识来发现潜在的道德风险，并在（法规空缺、冲突、不清晰）的情况下给出解决方案。
    3. 从业者受到客户信任的三个最重要因素：
        3.1 透明公开的业务操作
        3.2 为解决问题或危机，做出负责任的行为
        3.3 有道德的业务操作

知识点回答

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阅读笔记

Ethics

名词解释:

Stakeholder：利益相关者，指那些会被从业者的决定直接或间接影响到的个人或团体，在这个决定中，他们会持有股权或者股份；

Moral principles / Ethical principles：道德原则，是用于规范定义被认可是好的、可接受的、有义务的行为，以及坏的、不可接受的、禁止的行为的信念。

Ethics：伦理道德，另一个定义，是对道德原则的研习，即对善与恶的研习，对面对错误机会时如何进行对的选择的学习。

Code of Ethics：CFA社区用于规范成员，描述义务事项和禁止事项的一系列准则，被称为Code of Ethics。

Standards of conduct：作为CFA社区成员最少可接受的行为准则的基准，同时也助于解释Code of Ethics

    1. 道德行为，是遵从道德原则，在个人利益与行为导致其他人直接和间接造成结果之间取得平衡的行为。
    2. 有道德的行为，是有益的，并符合社会对道德的期望。一个行为使得受影响的利益相关者的结果得到改善，则被认为是有益的。例如，如实告知风险与成本就是一个有益的行为。
    3. 诚实、公平、正义、勤奋、尊重别人的权利。这些道德作为基础。
    4. 政府与其他相关实体，通过颁布法律法规的方式来传播有义务与被禁止的行为；不同的法律法规会影响到不同的信念与价值观。
    5. Code of Ethics and Standards of Professional Conduct，可以在CFA Institute Standards of Practice Handbook 中找到。

知识点回答

    1. Ethics can be described as a set of moral principles that provide guidance for our behavior;

    2. Standards of conduct serve as benchmarks for the minimally acceptable behavior required of members of a group. 

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阅读笔记

Ethics and Professionalism

名词解释：

Job，以此为生；
Vocation，十分般配而愿意贡献的；
Profession，基于特定知识或技术、基于服务他人，被分享并遵从一个共同的道德代码的成员而从事；

    Principle based Standards：CFA Institute Code and Standards；
    Rule based Standards：often narrowly defined

知识点回答

    1. Professionals use specialized knowledge and skills in service to others.
    2. A profession's code of ethics publicly communicates the shared principles and expected behaviors of a profession's members.

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阅读笔记

Challenges to ethical conduct

名词解释：

Situational influences：情景影响，属于外部因子，比如环境或文化，决定了我们的思想、影响我们的决策与行为。即可导致善的行为，也可以导致恶的行为。

一般来说，钱与名声，是重要的情景影响因子。还有一个关键的因子，是忠诚（导致善于恶）。
对公司来说，合规政策是建立公司道德文化的好的开端，但过分强调服从和合规政策，也是一种恶的情景影响因子并导致错误的决定。

    1. 第一个挑战：过于自信，带来的偏见
    2. 第二个挑战：失与认识或显著低情景影响因素的效果

知识点回答

    1. Situational influences，which are external factors，can shape our thinking，decision making，and behavior and are more likely to lead to unethical behavior than internal traits or character.
    2. Situation influences can motivate individuals to act in their short-term self-interests without recognizing the long-term risks or consequences for themselves and others.

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阅读笔记

The Importance of Ethical Conduct in the Investment Industry

    1. Capital flows more efficiency between investors and borrowers when financial market participants are confident that all parties will behave ethically.
    2. The investment industry and financial markets are built on trust. Reasons: The nature of the client relationship, differences in knowledge and access to information, the nature of investment products and services.

知识点回答

    1. Investment professionals have a special responsibility because clients entrust them to protect the clients's assets.

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阅读笔记

Ethical vs Legal Standards

    1. Laws and regulations often codify ethical actions that lead to better outcomes for society or specific groups of stakeholders.
    2. Although laws frequently codify ethical actions, legal and ethical conduct are not always the same.
    3. eg. material nonpublic information
    4. eg. the area of "whistleblowing"，refers to the disclosure by an individual of dishonest, corrupt, or illegal activity by an organization or government. 
    5. types of conduct
       |  legal | legal & ethical | ethical |
    6. the law is not always the best mechanism to reduce unethical behavior for several reasons.
            6.1 laws typically follow market practices;
            6.2 regulators' responses typically take significant time, during which the problematic practice may continue or even grow;
            6.3 a new law may be vague, conflicting, and/or too narrow in scope, also may reduce or even eliminate the existing activity while simultaneously creating an opportunity for a different, but similarly problematic activity.
            6.4 laws vary across countries or jurisdictions, allowing questionable practices to move to places that lack laws relevant to the questionable practices.
            6.5 laws are also subject to interpretation and compliance by market participants.

知识点回答

    1. Some ethical behavior may be illegal; for example, civil disobedience.
    2. New laws designed to reduce or eliminate conduct that adversely affects the markets can create opportunities for different, but similarly problematic, conduct.

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阅读笔记

Ethical decision-making frameworks

    1. One strategy to increase trust in the investment industry is to increase the ability and motivation of market participants to act ethically
    2. the single most important factor in promoting ethical behavior among the firm's employees is development, maintenance, and demonstration of a strong culture of integrity within the firm by senior management.
    3. First step：adopting a code which clearly lays out the ethical principles that guide the thought processes and conduct. It's necessary but insufficient.
    4. Second step：establish an ethical framework to guide internal thought process
    5. Ethical decision-making framework
        Identity：relevant facts，stakeholders and duties owed，ethical principles， conflicts of interest
        Consider：situational influences，additional guidance，alternative actions
        Decide and act
        Reflect：was the outcomes as anticipated？Why or why not？

知识点回答

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阅读笔记

Conclusion

    1. Ethics refers to the study of making good choices. Ethics encompasses a set of moral principles of conduct that provide guidance for behavior.
    2. Situational influences are external factors that may shape our behavior.
    3. Challenges to ethical behavior include being overconfident in our own morality, underestimating the effect of situational influences, and focusing on the immediate rather than long-term outcomes or consequences of a decision.
    4. In any given profession, the code of ethics publicly communicates the established principles and expected behavior of its members.
    5. Members of a profession use specialized knowledge and skills to serve others, they share and agree to adhere to a common code of ethics to serve others and advance the profession.
    6. A code of ethics helps foster public confidence that members of the profession will use their specialized skills and knowledge to serve their clients and others.
    7. High ethical standards always matter and are of particular importance in the investment industry, which is based almost entirely on trust. Clients trust investment professionals to use their specialized skills and knowledge to serve clients and protect client assets. All stakeholders gain long-term benefits when investment professionals adhere to high ethical standards.
    8. Rules and laws often codify ethical actions that leads to better outcomes for society and specific groups of stakeholders.
    9. Organizations and individuals generally adhere to legal standards, but legal standards are often created to address past ethical failings and do not provide guidance for an evolving and increasingly complex world.
    10. Legal standards are rule based. Ethical conduct goes beyond legal standards, balancing self-interest with the direct and indirect consequences of behavior on others.
    11. A framework for ethical decision making can help people look at and evaluate a decision from different perspectives, enabling them to identify important issues, make wise decisions, and limit unintended consequences.