This is a graded discussion: 10 points possible due Oct 28 B Ch 12 Discussion - Accountability Goes Professional Ch - 12 Accountability Goes Professional Investment recommendations by financial advisors offer clients possibilities of both dire losses and hoped for financial gains. As professionals, advisors should be, but sometimes haven't been, trustworthy stewards of clients' private information. That's why the financial industry, as early as 1947, began establishing societies that later merged to become the CFA Institute. Today, its members include more than 78,000 investment practitioners-securities analysts, portfolio managers, financial strategists-and educators in more than 120 countries. The CFA Institute serves three broad areas for which members are accountable-continuing education, conduct and ethics, and standards of practice-to maintain high standards of professionalism in their field. The association's flagship activity is the Chartered Financial Analyst (CFA) program. Regarded as the industry's premier certification, the CFA designation has been earned by more than 78,000 investment professionals. The basic requirements for participation in the CFA program include holding or being in the final year of a university degree (or equivalent as assessed by CFA Institute), or having four years of qualified, professional work experience in an investment decision-making process. To obtain the charter, however, a candidate must have completed a university degree (or equivalent) and four years of qualified, professional work experience, in addition to passing the three exams that test the academic portion of the CFA program. Earning a charter involves a progression of postgraduate tests and three years of professional experience. The program's three levels of study each requires 250 hours of preparation and an examination covering a broad-based "Body of Knowledge" for the investment community. Level 1 includes tools and concepts for determining the value of investments, portfolio man- agement, and CFA Institute's code of ethics and professional conduct. Level 2 applies the tools from Level I in analyzing investments and applies the code of ethics and conduct in practical situations. Level 3 explores the portfolio management process, including ethics and conduct, in thorough detail. After meeting these requirements and signing a professional conduct statement, the CFA Institute's member has the right to use the CFA designation. While the testing hurdle is a one-time requirement, professional accountability is a never-ending obligation. Every year, members must disclose any customer complaints or disciplinary procedures about their professional conduct. The public, too, may file complaints against an CFA Institute's member for unethical behavior, misconduct, or incompetence. Officials review each disclosure or complaint and conduct inquiries that could lead to disciplinary actions. Punishments range from letters of caution to public censure, and even removal from membership or revocation of the CFA charter. Continuous accountability is a cornerstone for maintaining ethical and professional standards. Discussion Questions: (a) What might the CFA designation indicate to clients? (b) How might a financial advisor benefit from having the CFA designation? (c) If you were a financial advisor, would you take the time and spend the money to get the CFA designation? Why or why not