Reading 89
MODULE 89.1: ETHICS AND TRUST
Explain ethics.
Ethics can be described as a set of shared beliefs about what is good or acceptable behavior and what is bad or unacceptable behavior. Ethical conduct follows moral principles and is consistent with society's ethical expectations.
Ethical conduct has also been described as conduct that improves outcomes for stakeholders—people directly or indirectly affected by the conduct. For investment professionals, stakeholders include their clients, coworkers, employers, and the investment profession as a whole. Some decisions may bring positive results for you but negative consequences for a stakeholder; ethical conduct is behavior that balances your self-interest with the impact on others.
倫理（ethics）可定義為一群人共同對於「何謂好／可接受的行為」與「何謂壞／不可接受的行為」的信念。倫理行為遵循道德原則，並符合社會對倫理的期待。
倫理行為也可以理解為「使利害關係人（stakeholders）獲得更佳結果」的行為。利害關係人是直接或間接受該行為影響的人，對投資專業人員而言包括：客戶、同事、雇主以及整個投資業界。某項決策可能對自己有利，卻對利害關係人造成負面影響——因此倫理行為的核心，是在自身利益與對他人的影響之間取得平衡。
Describe the role of a code of ethics in defining a profession.
A code of ethics is a written set of moral principles that can guide behavior by describing what is considered acceptable. It communicates the values, principles, and expectations of an organization or group, and provides a general guide to acceptable behavior. Some codes of ethics include a set of rules or standards that require some minimum level of ethical behavior.
A profession refers to a group of people with specialized skills and knowledge who serve others and agree to behave in accordance with a code of ethics. A professional code of ethics is a way for a profession to communicate to the public that its members will use their knowledge and skills to serve their clients in an honest and ethical manner.
道德準則（code of ethics）是一套書面的道德原則，藉由描述「何謂可接受的行為」來引導成員的行為。它用來傳達組織或群體的價值觀、原則與期待，並提供可接受行為的一般指引。部分道德準則還會附上具體的規則或標準（standards），要求成員至少達到某種倫理底線。
專業（profession）是指一群擁有專門知識與技能、服務他人並承諾遵守道德準則的人。專業道德準則的功能在於向社會大眾傳達：本專業成員將以誠實且合乎倫理的方式運用其知識與技能來服務客戶。
Describe professions and how they establish trust.
A profession is an occupational group (e.g., doctors, lawyers) with specialized expert knowledge and a focus on ethical behavior and service to society. Common characteristics include:
- A code and standards for professional behavior
- A regulatory body that enforces rules and monitors ethical behavior of members
- A focus on the needs of clients (students, patients, etc.)
- A focus on service to society
- A requirement to put client interests first
- A focus on (or requirement for) continuing education
Ways professions establish trust:
- Requiring high standards of expertise, knowledge, and skill
- Establishing standards of ethical behavior
- Monitoring professional conduct
- Encouraging continuing education to maintain and increase competence
- Being focused on clients' needs
- Mentoring and inspiring others in the profession
專業是一個具備專門知識的職業群體（如醫師、律師），通常聚焦於倫理行為與對社會的服務。常見特徵包括：
- 有專業行為準則與標準
- 有監管機構執行規則並監督成員的倫理行為
- 聚焦於客戶（學生、病患等）的需求
- 聚焦於服務社會
- 要求把客戶利益置於優先
- 強調或要求持續進修
專業建立信任的方式：
- 要求高標準的專業知識與技能
- 制定倫理行為標準
- 監督專業行為
- 鼓勵持續教育以維持並增進能力
- 以客戶需求為核心
- 指導並激勵業界後進
Describe the need for high ethical standards in investment management.
Investment professionals are entrusted with their clients' wealth, so they bear a special responsibility to use their specialized knowledge and skills to both protect and grow client assets. Investment advice and management are intangible products—quality and value are harder to evaluate than for tangible products such as a laptop or a restaurant meal. Trust therefore takes on greater importance than in many other businesses.
Failure to act ethically not only damages client wealth but also impedes the success of investment firms and professionals, because potential investors will be less likely to use their services.
投資專業人員肩負受託管理客戶財富的特殊責任，必須運用專業知能保全並增長客戶資產。由於投資建議與管理屬於無形商品，其品質與價值比筆電、餐點等實體商品更難評估，因此「信任」在投資業中比其他行業更為關鍵。
未能堅守高倫理標準不僅損害客戶財富，也會妨礙投資公司與從業人員自身的發展，因為潛在投資人將不願委託其服務。
教授提醒：金融從業人員若不講倫理，將傷及整個社會。金融業是儲蓄者與企業籌資者之間的中介，一旦投資人對顧問失去信任，可動用的資金便會減少，企業籌資成本上升；提供錯誤或誤導訊息更會把資本錯置到成長潛力較差的公司，降低整體經濟成長與社會福祉。
Explain professionalism in investment management.
Because clients of investment professionals rely heavily on their expertise, judgment, and ethical principles, many of the characteristics of a profession apply. Ethical principles are especially important because clients often lack significant knowledge about financial securities, fee structures, or sources of bias in recommendations.
| Standard | Description |
|---|---|
| Suitability standard | Match between client return requirements / risk tolerance and the characteristics of the recommended securities. |
| Fiduciary standard (stronger) | Requires professionals to use their knowledge and expertise to act in the best interests of the client. |
由於投資客戶高度仰賴從業者的專業、判斷與倫理原則，前述「專業」的特徵大多適用於投資業。倫理原則之所以特別重要，是因為客戶通常對證券、收費結構或推薦中可能存在的偏誤所知有限。
- 適合性標準（suitability）：客戶的報酬需求與風險承受度，需與所推薦證券的特性「匹配」即可。
- 受託人標準（fiduciary，較高）：要求從業者運用其專業知能以客戶最佳利益為依歸。
美國目前部分金融專業適用較低的適合性標準，部分則須遵守受託人標準。
Identify challenges to ethical behavior.
Common challenges to ethical behavior include:
- Overestimating one's own ethics: individuals tend to overrate the ethical quality of their own behavior on a relative basis, and overemphasize the role of personal traits.
- Situational (external) influences: external factors are often more important determinants of ethical behavior than internal traits. Examples include social pressure, loyalty to employer or coworkers, and the prospect of money or prestige—these can push individuals toward short-term self-interest at the expense of longer-term ethical results.
- Rules-based compliance culture: firms with strict rules-based compliance procedures risk fostering a "what can I do?" mindset rather than "what should I do?"—shifting attention away from ethical principles and longer-term consequences.
影響倫理行為的常見挑戰：
- 高估自己的倫理水準：人們通常會在比較中高估自身的倫理品質，並過度強調「個人特質」對倫理行為的決定作用。
- 情境（外部）影響：外部因素往往比內在特質更能左右倫理行為。例如：社會壓力、對雇主／主管／同事的忠誠、追求金錢與地位的誘因，可能使人傾向短期自利而忽略長期倫理後果。
- 規則化合規文化：過度強調規則合規的公司，容易培養「什麼可以做」而非「什麼應該做」的心態，反而忽略倫理原則與長期影響。
Compare and contrast ethical standards with legal standards.
Not all unethical actions are illegal, and not all illegal actions are unethical.
- Illegal but ethical (to many): reporting an employer's actions against client interests by sharing private company information may be illegal, yet many regard this "whistle-blowing" as ethical. Acts of civil disobedience are also often considered ethical despite being illegal.
- Legal but unethical: recommending investment in a relative's firm without disclosure may not be illegal, yet many would consider it unethical.
Ethical principles often set a higher standard than laws and regulations. New laws frequently follow recent unethical behavior:
- Securities Act of 1933, Glass-Steagall Act, Securities Exchange Act of 1934 — followed perceived bad behavior leading up to the 1929 crash.
- Sarbanes-Oxley Act — followed accounting scandals at Enron and WorldCom.
- Dodd-Frank Act — followed the 2008 financial crisis.
New laws can also create opportunities for new forms of unethical behavior. In general, ethical decisions require more judgment and consideration of effects on multiple stakeholders than legal decisions.
並非所有不道德行為都違法，也並非所有違法行為都不道德。
- 違法但被許多人視為合乎倫理：例如將雇主損害客戶利益的內部資訊揭露給主管機關（吹哨），在某些地方屬違法，但許多人認為合乎倫理；公民不服從亦然。
- 合法但不道德：未揭露利益關係下推薦投資親屬的公司，可能不違法，卻違反倫理。
倫理原則往往設定比法律更高的標準。新法規經常是回應先前的不道德行為而產生：
- 1929年股災後出現的 Securities Act of 1933、Glass-Steagall Act、Securities Exchange Act of 1934。
- Enron 與 WorldCom 會計醜聞後的 Sarbanes-Oxley Act。
- 2008年金融海嘯後的 Dodd-Frank Act。
新法規也可能催生新的不道德行為。整體而言，倫理決策比法律判斷需要更多的判斷力，並須考慮對多方利害關係人的影響。
Describe a framework for ethical decision making.
Integrating ethics into a firm's decision-making process improves decisions by allowing teams to consider alternative actions and short- vs. long-term consequences from multiple perspectives. The firm must first adopt a code of ethics, and senior management support is critical to building an ethical culture.
The CFA curriculum's ethical decision-making framework consists of four steps:
- Identify:Relevant facts, stakeholders and duties owed, ethical principles, and conflicts of interest.
- Consider:Situational influences, additional guidance (mentor, colleagues, legal/compliance), and alternative actions.
- Decide and act.
- Reflect:Was the outcome as anticipated? Why or why not?
Step 1 — Identify: Determine the facts you have and the facts you would like to have. Identify stakeholders (employer, clients, coworkers, self, family, others in the industry) and the duties owed to each. Make potential conflicts of interest explicit, and identify the relevant ethical principles.
Step 2 — Consider: Identify situational factors and personal biases. Seek outside guidance—from mentors, colleagues with good judgment, or the firm's legal and compliance teams—to gain alternative perspectives. Generate and evaluate alternative actions, weighing both short- and long-term effects and unanticipated ethical implications.
Step 3 — Decide and act on the chosen alternative.
Step 4 — Reflect: Evaluate the outcomes—did the decision produce the intended results? Were ethical principles, situational influences, and duties to stakeholders properly considered?
把倫理納入公司的決策流程，可讓團隊從多種角度考量不同方案及短期與長期影響，從而做出更佳決策。公司必須先採行道德準則，且高階管理層的支持對建立倫理文化至關重要。
CFA 課程的倫理決策框架包含四個步驟：
- 步驟一：辨識（Identify） — 相關事實、利害關係人與所負義務、倫理原則、潛在利益衝突。
- 步驟二：考量（Consider） — 情境影響、額外指引（導師、同事、法務／合規）、可行替代方案。
- 步驟三：決策並執行（Decide and act）。
- 步驟四：反省（Reflect） — 結果是否符合預期？為什麼？
第一步：釐清「已有」與「希望取得」的事實；找出所有利害關係人（雇主、客戶、同事、自己、家人、業界其他人）及對每方的義務；明確列出潛在利益衝突，並識別涉及的倫理原則。
第二步：辨識情境因素與個人偏誤；尋求外部觀點（信賴的導師或同事、公司法務與合規部門）；產出並評估各種替代方案，同時考量短期與長期影響以及未預期的倫理後果。
第三步：就選定的方案決策並執行。
第四步：檢視結果是否符合預期；倫理原則、情境影響及對各利害關係人的義務是否獲得妥善考慮。
- A. are a personal view of acceptable behavior.
- B. encompass current "best practices."
- C. specify a minimum level of acceptable conduct.
- A. can increase public trust in the profession.
- B. guarantees that members will adhere to a minimum level of ethical conduct.
- C. includes standards that provide guidance for specific behaviors.
- A. social pressure.
- B. large financial rewards.
- C. a lack of ethical principles.
- A. is considered a lower standard.
- B. often involves more judgment.
- C. includes compliance with all laws and regulations.
- A. lead to higher profits.
- B. avoid any unintended ethical consequences of decisions.
- C. balance the interests of various stakeholders.
Ethical behavior conforms to a set of rules and moral principles based on shared beliefs about what behavior is acceptable and what is unacceptable.
A professional code of ethics communicates to the public that members will use their knowledge and skills to serve clients honestly and ethically, and can increase public confidence and trust that members will act ethically.
A profession is an occupational group with specialized expert knowledge. Professions establish trust by requiring high standards of expertise, setting standards for ethical behavior, and monitoring professional conduct.
Investment professionals have a special responsibility to use their specialized knowledge and skills to both protect and grow client assets. Because investment management is an intangible product, high ethical standards are even more important in financial services.
Some financial professionals are held to a suitability standard (matching client return needs / risk tolerance to recommended securities), while others are held to a fiduciary standard (acting in the client's best interests).
Challenges to ethical behavior include overestimating one's own ethical character, focusing on near-term over long-term consequences, and letting situational influences such as peer pressure unduly affect decisions.
Not all unethical actions are illegal, and not all illegal actions are unethical. Laws are more specific than ethical principles and often address prior unethical behavior. Ethical behavior requires more judgment; civil disobedience, for instance, may be considered ethical even when illegal.
An ethical decision-making framework leads to better decisions by identifying the stakeholders affected and the conflicts of interest among them, considering alternative actions and situational influences on decision makers, seeking different perspectives, and evaluating decisions for unintended consequences.
【LOS 89.a】倫理行為依循一套規則與道德原則，這些規則建立在「何謂可接受／不可接受行為」的共同信念之上。
【LOS 89.b】專業道德準則向社會傳達：成員將以誠實合乎倫理的方式運用知能服務客戶，藉此提升公眾對專業的信心。
【LOS 89.c】專業是擁有專門知識的職業群體，透過高度的專業要求、倫理標準與行為監督建立信任。
【LOS 89.d】投資從業者承擔保全與增長客戶資產的特殊責任；投資管理是無形商品，使高倫理標準在金融業格外重要。
【LOS 89.e】部分金融從業者僅須遵守適合性標準（投資建議與客戶報酬需求／風險承受度匹配），其他人則須遵守較高的受託人標準（以客戶最佳利益行事）。
【LOS 89.f】倫理行為的挑戰包括：高估自身倫理品格、只考慮短期而非長期後果、受情境影響（如同儕壓力）左右決策。
【LOS 89.g】不道德與違法不必然重疊。法律比倫理原則更具體，且常源於先前的不道德行為。倫理行為需更多判斷力，例如公民不服從在違法情況下仍可能被視為合乎倫理。
【LOS 89.h】倫理決策框架能藉由辨識利害關係人與利益衝突、考量替代方案與情境影響、徵詢多元觀點、檢視決策是否帶來未預期後果，協助做出更佳決策。