Reading 6

Question 1

Describe professions and how they establish trust

Answer 1

Profession = occupational group

• specific education
• expert knowledge
• framework of practice and behaviour
  i) community trust
  ii) respect
  iii) recognition

To establish trust:

• normalising practitioner behaviour
• providing a service to society
• maintaining a client focus
• high standards for entry
• body of expert knowledge
• encourage continuing education
• monitoring professional conduct
• being collegial
• having recognised overseeing bodies
• encouraging engagement of members

Question 2

Explain professionalism in investment management

Answer 2

TRUST: earned through:

• expectation that professionals will have the technical expertise
• knowledge of applicable law
• understanding of ethics and professional standards (treat clients with care, transparency, integrity)

= CFA

Question 3

Describe:
- expectations of, and
- challenges for
investment management professionals

Answer 3

Expectations: CFA code of ethics

Challenges:

• consumerism
• regulations
• globalisation
• technological innovation