Importance of Legal Knowledge in Professionalism

Very Easy Cfa Institute Code And Standards Professionalism - Law Knowledge

As a participant in the financial industry, it is essential to understand the legal obligations that govern your professional conduct. The CFA Institute Code of Ethics and Standards of Professional Conduct outlines guidelines to uphold the integrity and professionalism of investment firms and professionals.

Which of the following statements best describes the importance of possessing knowledge of applicable laws and regulations in the context of the CFA Institute's expectations regarding professionalism?

Investment professionals are only required to comply with laws if they directly conflict with the CFA Institute standards.

Understanding legal obligations ensures that investment professionals act in a manner that supports the trust placed in them by clients and the public.

Knowledge of laws is optional as long as the investment professional's actions align with personal ethical beliefs.

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