Ethics Can anyone really understand it...??? understand, necessary, sometimes, question

studyn

brave ones,
schweser vol 2
exam 2 (morning)
question 18
not a violation…: answer by schweser (“it is not necessary to provide the exact number of referral fees…just the details of the compensation…”), so the company did not violate the Standards…
and then when you check the “Bible”, the SPH says (page 127)
“…must disclose the nature of the benefit…together with the estimated value…”
i’m just tired of this subtle and discretionary interpretations that sometimes go to the left and others to right…no consistency here, is my opinion
if anyone did this question could please share opinion…
many thanks and keep sleeves rolled…

EastCoastJ

I don’t have those questions, but from my understanding of the topic, you must disclose the nature, amount and expected duration of referral fees / additional compensation arrangements.

thisisbrianly

thanks…
i think their point was “Volume” does not need…they considered volume different from amount…
will these tricks help us be better finance guys…? surely not…

waldziuchna

I agree. I am sick of the tricky ethics questions, which no way makes you better in finance or investment related client facing tasks. It’s no good if a person is master in all interpretation of ethics like a lawyer but does not have enough detailed understanding of accounting/finance.
I would rather spend time studying finance/accounting topics than studying ethics repeatedly hoping to get the tricky ones right.