Ethical and Professional Standards
Professional ethics and standards are essential for building trust in both traditional finance and DeFi. This section covers the ethical foundations that underpin the finance charter, from the Code of Ethics to the practical application of Standards I-VII, and examines how these principles translate into the evolving regulatory landscape of decentralized finance.
Topics
- Ethics and Trust in the Investment Profession — Why ethics matter, how professions build trust, and the ethical decision-making framework
- Code of Ethics and Standards of Professional Conduct — The six Code components, seven Standards categories, and the Professional Conduct Program
- Guidance for Standards I-VII — Detailed application guidance, compliance procedures, and worked examples for every Standard
- Introduction to GIPS — Global Investment Performance Standards: composites, verification, and fair performance presentation
- Ethics Application — Scenario-based violation identification, proper conduct analysis, and DeFi-specific ethics cases
Cross-Section Links
Ethics intersects with virtually every area of the finance curriculum. Key connections include:
- Corporate Governance — Governance mechanisms, stakeholder conflicts, and board responsibilities mirror the ethical duties outlined in Standards III and IV
- Portfolio Management — Fiduciary duty, suitability, and the Investment Policy Statement connect directly to Standards III(A) and III(C)
- Behavioral Biases — Overconfidence, anchoring, and situational influences are the psychological roots of ethical failures