GAT Professional Standards and Ethics 3 — Questions and Answers
Question 1: A financial advisor recommends a high-fee investment product that benefits them personally more than it benefits the client. This is an example of:
- Sound financial planning
- A fiduciary breach (Correct answer)
- Standard industry practice
- Transparent communication
Correct answer: A fiduciary breach
A fiduciary breach occurs when an advisor places their own financial interests above those of the client they are obligated to serve.
Question 2: Which of the following best describes 'informed consent' in a professional context?
- A client agreeing to terms without full explanation
- A professional obtaining agreement after fully disclosing risks and alternatives (Correct answer)
- A written contract for services rendered
- Verbal approval from a supervisor
Correct answer: A professional obtaining agreement after fully disclosing risks and alternatives
Informed consent requires that a person receives complete, understandable information about a decision before voluntarily agreeing to it.
Question 3: A software developer is asked to add hidden tracking features to an app without telling users. This raises which primary ethical concern?
- Intellectual property theft
- Deception and violation of user privacy (Correct answer)
- Copyright infringement
- Poor software design
Correct answer: Deception and violation of user privacy
Collecting user data without disclosure deceives users and violates their privacy rights and reasonable expectations of transparency.
Question 4: In professional ethics, 'non-maleficence' means:
- Acting in the best interest of the client
- Distributing benefits fairly across all parties
- Avoiding actions that cause harm (Correct answer)
- Respecting the autonomy of individuals
Correct answer: Avoiding actions that cause harm
Non-maleficence is the ethical obligation to refrain from causing harm, often summarized as 'first, do no harm.'
Question 5: A professional is pressured by their employer to falsify test results. The ethical course of action is to:
- Comply to preserve job security
- Falsify only minor results
- Refuse and document the pressure received (Correct answer)
- Ask a coworker to falsify results instead
Correct answer: Refuse and document the pressure received
Refusing to falsify results and documenting the pressure protects professional integrity and creates a record of potential wrongdoing.
Question 6: Which situation represents a violation of professional boundaries?
- Maintaining neutrality in client disputes
- Entering a romantic relationship with a current client (Correct answer)
- Referring clients to better-qualified specialists
- Documenting all client interactions
Correct answer: Entering a romantic relationship with a current client
Romantic relationships with current clients violate professional boundaries because the power imbalance compromises objectivity and the client's welfare.
Question 7: A code of ethics in a profession primarily serves to:
- Maximize profit for practitioners
- Set minimum standards of conduct and protect the public (Correct answer)
- Eliminate competition between professionals
- Reduce the need for government regulation
Correct answer: Set minimum standards of conduct and protect the public
A professional code of ethics establishes minimum behavioral standards that protect clients, the public, and the integrity of the profession.
GAT Professional Standards and Ethics 3
A financial advisor recommends a high-fee investment product that benefits them personally more than it benefits the client.
This is an example of: