7 CFA Code Of Ethical Dilemmas

1. Peter Drucker was a famous for his idea that a business’s sole existence is creating profits. Drucker felt a business’s primary responsibility was to serve the customer. Profits should not be the only goal of a business, but a condition for the business to be able to be sustainable and continue to exist. Drucker was a huge advocate for wanting to decentralize the managerial power and to simplify the businesses. He was one of first people to develop the idea of a “knowledge worker”, and he threw out the idea that the Blue Collar worker may eventually die off. This has become extremely apparent in the last 10 years as companies begin to outsource all of their “Blue collar” work outside of the United States. One of Drucker’s most famous

This means putting the client’s financial wellbeing ahead of advisors own self-interest. This causes many ethical decisions to be made and it is the role of the financial Advisor make the correct one every time. According to the 7 CFA Code of Ethics, 3 of the 7 standards relate this very topic, professionalism, duties to clients, and conflicts of interest. The one that stands out most is duties to clients, a Financial Advisor must get to know the client and get to know what is the best option for that specific client. Just because one financial option works for one client does not mean works for all. Clients have vastly

It is up to the financial advisor job to ask the right questions to the client that allows them to match what the client needs, with what the potential financial products are out on the market. Where Financial Advisors get in trouble, is when they try to force a financial product fit onto a client that does not fit their financial needs in order to reap additional personal financial benefits. This is when conflicts of interest comes into play, as a financial advisor should be very upfront with their fees and what percentage of the money they will make on the particular deal. Also, according to the CFA code of ethics a financial advisor should be sure that whether a client is investing one-thousand dollars or one-million dollars they get treated equally. This does not mean the same amount of time, but the same amount of though and care that goes into the decision of how to invest the thousand dollars compared to the million dollars. The Financial Analyst also needs to be sure they are upholding the first of the seven standards in the code of ethics, which is professionalism, it is critical that they maintain put reasonable care and judgement to achieve and maintain independence and objectivity for the clients, as well