Ethical Considerations in the Professional Stature of Analysts

Abstract

FOR A NUMBER of years, recurrent exhortations have been heard within The Financial Analysts Federation to the effect that greater attention should be directed toward examining and perhaps improving ethical standards within the province of the Financial Analyst. For example, on page 1 of Volume 1, number 1, of the Analysts Journal (as it was then called), January of 1945, the Editorial Board set forth its views on the proposed scope of the fledgling publication. Among other things it was stated that material published in the Journal should include consideration of ethics and standards in the profession of security analysis.' In addition, several references to the need for investigating ethical standards and developing a detailed code of ethics are contained in various Annual Reports to the membership of the Federation. And it might also be noted that a standing committee on Professional Ethics and Standards has been in existence for many years. Through the years the major attention of above mentioned committee has been focused on improving the standards of professional competence for the Financial Analyst. And their achievements in this connection have been considerable. Both in reports to the Federation and in Journal articles, the need for definitive professional standards has been stressed, and recently these activities culminated in The Institute of Chartered Financial Analysts.