INDUSTRY OVERVIEW
It is about getting to the heart and the core purpose of the investment industry — its vital role in
the world: from helping people save for the future to funding schools, hospitals, roads and other
essentials.
The benefits this brings when done well (ethically and all parts working together) help serve
society.
CHAPTER 1
THE INVESTMENT INDUSTRY:
A TOP-DOWN VIEW
After completing this chapter, you should be able to do the following:
• Describe the financial services industry.
• Identify types of financial institutions, including banks and insurance companies
• Define the investment industry.
• Explain how economies benefit from the existence of the investment industry.
• Explain how investors benefit from the existence of the investment industry.
• Describe types and functions of participants of the investment industry.
• Describe forces that affect the evolution of the investment industry.
, ETHICS AND REGULATION
This module focuses on the essential foundations for the investment world — ethics and
regulation. The firm ground on which we build for our clients: trust, reputation, confidence and
value — the essentials of a strong and healthy client-focused industry.
CHAPTER 2
ETHICS AND INVESTMENT PROFESSIONALISM
After completing this chapter, you should be able to do the following:
• Describe the need for ethics in the investment industry.
• Identify obligations that individuals in the investment industry have to clients, prospective
clients, employers, and co-workers.
• Identify elements of the CFA Institute Code of Ethics.
• Explain standards of practice (professional principles) that are based on the CFA Institute Code
of Ethics.
• Describe benefits of ethical conduct.
• Describe consequences of conduct that is unethical or unprofessional.
• Describe a framework for making ethical decisions.
CHAPTER 3
REGULATION
After completing this chapter, you should be able to do the following:
• Define regulations.
• Describe objectives of regulation.
• Describe potential consequences of regulatory failure.
• Describe a regulatory process and the importance of each step in the process.
• Identify specific types of regulation and describe the reasons for each.
• Describe elements of a company’s policies and procedures to ensure the company complies
with regulation.
• Describe potential consequences of compliance failure.
It is about getting to the heart and the core purpose of the investment industry — its vital role in
the world: from helping people save for the future to funding schools, hospitals, roads and other
essentials.
The benefits this brings when done well (ethically and all parts working together) help serve
society.
CHAPTER 1
THE INVESTMENT INDUSTRY:
A TOP-DOWN VIEW
After completing this chapter, you should be able to do the following:
• Describe the financial services industry.
• Identify types of financial institutions, including banks and insurance companies
• Define the investment industry.
• Explain how economies benefit from the existence of the investment industry.
• Explain how investors benefit from the existence of the investment industry.
• Describe types and functions of participants of the investment industry.
• Describe forces that affect the evolution of the investment industry.
, ETHICS AND REGULATION
This module focuses on the essential foundations for the investment world — ethics and
regulation. The firm ground on which we build for our clients: trust, reputation, confidence and
value — the essentials of a strong and healthy client-focused industry.
CHAPTER 2
ETHICS AND INVESTMENT PROFESSIONALISM
After completing this chapter, you should be able to do the following:
• Describe the need for ethics in the investment industry.
• Identify obligations that individuals in the investment industry have to clients, prospective
clients, employers, and co-workers.
• Identify elements of the CFA Institute Code of Ethics.
• Explain standards of practice (professional principles) that are based on the CFA Institute Code
of Ethics.
• Describe benefits of ethical conduct.
• Describe consequences of conduct that is unethical or unprofessional.
• Describe a framework for making ethical decisions.
CHAPTER 3
REGULATION
After completing this chapter, you should be able to do the following:
• Define regulations.
• Describe objectives of regulation.
• Describe potential consequences of regulatory failure.
• Describe a regulatory process and the importance of each step in the process.
• Identify specific types of regulation and describe the reasons for each.
• Describe elements of a company’s policies and procedures to ensure the company complies
with regulation.
• Describe potential consequences of compliance failure.
