Ethical and Professional Standards II by Edu Pristine

Author of lecture Ethical and Professional Standards II

Edu Pristine

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Excerpts from the accompanying material

... involving issues of professional integrity. Distinguish between conduct that conforms to the Code and Standards and conduct that violates the Code ...

... Requirement vs. recommendation. Recommend practices and procedures designed to prevent violations ...

... Stay informed! Review compliance material. Seek advice ...

... Make information available ...

... rumors as well as a number of analysts are of the opinion that the IPO will be a highly successful and Nic could gain a substantial amount of money by investing in it. Nic should A: Participate in the IPO since it is legal as per CFA institute standards and he must follow CFA institute standards; B: Participate in the IPO since he needs to follow CFA institute guidelines, but must document the differences with the local law; C: Do Not participate in the IPO since he must comply with the ...

... Independence and Objectivity. Accept gift, but not expense of objectivity! No allocation in ...

... Create a restricted list. Restrict special cost arrangemen. Limit gifts to token items. ...

... much of significant value Joel Silver a fund manager with VR Capital. For the past five years his macro fund has consistently outperformed the benchmark S&P500. Grant Hill one of his big time customers is very satisfied with his portfolio performance and he gifts him a watch of significant value. The gift is supposed to reward him for his outstanding performance. Joel accepts the gift and discloses the gift to his employer. A: There is violation of standard ...

... Employee qualification "Reference of material" - Information from recognized financial/statistical services C. ...

... Matt Doran runs an investment management firm. His firm subscribes to service from a larger investment firm that provides research reports. Matt copies the reports and after making a few cosmetic changes to the formatting distributes the research report as his own proprietary research. His clients pay him a considerable sum of money for the reports which they find are very well researched and provide information regarding a large set of companies. A: Matt has violated standard ...

... Dishonesty, fraud, or deceit. ...

... his trip cost.Mr. Smith, an analyst was sent to a conference in Denver. His company decides to cover all the costs of the trip. After returning from the trip Smith intentionally includes an expense receipt that was not in his expense for the company trip. A: Smith has violated the standard, since his act involves dishonesty and fraud and ...

... Her activities has resulted in her being arrested for a number of times for unlawful conduct. A. She violated standard I(D). Misconduct since getting arrested is an unlawful act and against professional integrity. B: She did not violate standard I(D). Misconduct since getting arrested is not an unlawful act. C: She did not violate standard I(D). Misconduct since the arrest doesn´t pertain to ...

... "I(A) Knowledge of the law - Abide by the more strict law" I(B) Independence and objectivity. Accept gifts only if they don´t compromise on objectivity ...

... by buying the shares for his personal portfolio. C: Lock frequents a café near his work place. The café is a favorite hangout for employees of a tech company TrixAm Inc.. While having coffee in the morning he meets a few employees who tell him about an inside information on recent transaction that could double the revenues in the next few years. Lock immediately buys some TrixAm stocks for his personal portfolio. A: Lock has not violated standard II(A) Material ...