WEDNESDAY: 15 December 2021.    Time Allowed: 3 hours.

Answer ALL questions. Marks allocated to each question are shown at the end of the question.


The operations of a company should be guided by ethical practices that seek to promote good corporate citizenship and maximisation of shareholders returns.

In view of the above statement, examine the roles of the board in promotion of ethical conduct under the following aspects:

1.         Ethics and integrity.       (4 marks)

2.         Code of conduct.       (4 marks)

3.         Conflict of interest.      (4 marks)

4.         Legal compliance audits.      (4 marks)

5.         Stakeholders engagement.    (4 marks)

(Total: 20 marks)



1.          With respect to the code of conduct and ethics guiding members of the Institute of Certified Investment and Financial Analysts, explain the following:

Charging fees when offering professional services.      (6 marks)

The don’ts while marketing and advertising professional services.     (6 marks)

2.          Consequentialism holds that we are morally obligated to act in ways that produce the best consequences.

With reference to the above statement, explain four types of consequentialism.   (8 marks)

(Total: 20 marks)



1.          Discuss five red flags of an online investment fraud.       (10 marks)

2.          Wayne Payne (1985) and Daniel Goleman (1998) popularised the idea of emotional intelligence in organisations.

With reference to the above statement:

Distinguish between “ethical intelligence” and “emotional intelligence”.    (4 marks)

Explain three benefits of emotional intelligence to a Certified Investment and Financial Analyst in an organisation.    (6 marks)

(Total: 20 marks)



1.           With the aid of a suitable diagram, analyse the fraud triangle theory.   (10 marks)

2.          The Enron scandal provides a fascinating case study on corporate governance.

With reference to the above statement, state five actionable lessons that investors could take away from the Enron scandal.   (5 marks)

3.           Explain five benefits that an investments advisory firm would gain from compliance with Global Investment Performance Standards (GIPS).    (5 marks)

(Total: 20 marks)



1.           With regard to theories of corporate governance, distinguish between “transaction cost theory” and “political theory”.     (4 marks)

2.           Institutional investors play a critical role in corporate governance.

With respect to ,the above statement, outline six core principles in which the stewardship code for institutional investors issued by the Capital Markets Authority (CMA) is based on.    (6 marks)

3.           Examine five branches of ethics.          (10 marks)

(Total: 20 marks)

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