{"id":15316,"date":"2019-12-31T08:20:17","date_gmt":"2019-12-31T08:20:17","guid":{"rendered":"https:\/\/analystprep.com\/cfa-level-1-exam\/?p=15316"},"modified":"2025-09-26T05:03:47","modified_gmt":"2025-09-26T05:03:47","slug":"professionalism-in-investment-management","status":"publish","type":"post","link":"https:\/\/analystprep.com\/cfa-level-1-exam\/ethical-and-professional-standards\/professionalism-in-investment-management\/","title":{"rendered":"Professionalism in Investment Management"},"content":{"rendered":"\n<p>Investment\nmanagement is an upcoming profession. This is evidenced by the following:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>The public understanding of its practice and codes are still growing.<\/li><li>There is a lack of recognition by the regulators and the employers, which prevent the establishment profession in investment management.<\/li><li>Not all participants in the investment management are professionals since the participants have not engaged in specified training or are members of any recognized authority. This makes it hard for investment management to gain trust.<\/li><\/ol>\n\n\n\n<p>However,\nsome critical elements of investment management have developed over the years.\nInvestment management just like any other profession meets a large proportion\nof the profession expectations. Moreover, in most of the countries, some form\nof certification has been established, with no requirements to join a\nprofessional body. &nbsp;The investment\nmanagement profession is trying to move with time. That is, it tries to cope\nwith ever-changing demands.<\/p>\n\n\n\n<p>The\ninvestment management is becoming global due to increased opening of the capital\nmarket internationally. Therefore, investment managers can offer their services\nin different countries or freely moving within the offices of multinational asset\nmanagement firms. Several established bodies such as actuarial societies have\ninvestment management professionals as members.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Building Trust in Investment Management<\/h2>\n\n\n\n<p>Investment management\nprofession as established itself to the level of other professions such as law\nand medicine, such that it is trusted to draw knowledge and utilize it with\ncare and judgment. To maintain this trust, professionals should possess technical\nand financial expertise and understand the laws and regulations.<\/p>\n\n\n\n<p>The investment management\nprofessionals should explain to the clients about the charges, uncertainties, and\nthe conflicts that may arise in providing their investment services.<\/p>\n\n\n\n<p>The investment management\nprofessionals should always adhere to codes of ethics and professional standards\nwhile their practices should be guided by care, transparency, and integrity.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Question<\/h2>\n\n\n\n<p>Which of the following is <em>most likely <\/em>to be the group whose members should uphold fiduciary duty?<\/p>\n\n\n\n<p>A. An employer<\/p>\n\n\n\n<p>B. A not-for-profit body<\/p>\n\n\n\n<p>C.  A Profession<\/p>\n\n\n\n<p><strong>Solution<\/strong><\/p>\n\n\n\n<p>The correct answer is C.<\/p>\n\n\n\n<p>Fiduciary duty is a commitment\nto high-quality care when acting for the benefit of another party. This implies\nthat the professionals should act in the best interest of the client while maintaining\na high level of care, skill, and diligence. Other institutions such as employers,\nregulators and not-for-profit bodies may support but not as much as professions.\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investment management is an upcoming profession. This is evidenced by the following: The public understanding of its practice and codes are still growing. There is a lack of recognition by the regulators and the employers, which prevent the establishment profession&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-15316","post","type-post","status-publish","format-standard","hentry","category-ethical-and-professional-standards","blog-post","no-post-thumbnail","animate"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Professionalism in Investment Management | AnalystPrep CFA Level 1<\/title>\n<meta name=\"description\" content=\"Understand professionalism in investment management, ethical behavior, fiduciary duty, standards &amp; responsibility in the asset management world.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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