标题: Disclosure of lavish compensation: violation or not? [打印本页] 作者: water2012 时间: 2011-7-11 17:55 标题: Disclosure of lavish compensation: violation or not?
I encountered one problem on the schweser practice exam.
A CEO of a company offers an investment banking analyst lavish compensation(private jet, vacation resort...) if the analyst completes the underwriting of its stock issue within a short time period.
The correct answer according to schweser is that the analyst should disclose the compensation to the employer, but I chose the incorrect answer that the analyst should not accept such lavish compensation to maintain his objectivity.
So does that mean lavish compensation is not a violation as long as it's disclosed?
The Handbook also states:
Best practice dictates that members and candidates must reject any offer of gift or entertainment that could be expected to threaten their independence and objectivity.
So apparently there are "best" practices but also "acceptable" practices that are not recommended but do not violate the Standard.
I really hate the ambiguity.
Edited 1 time(s). Last edit at Thursday, May 20, 2010 at 02:38PM by ezbentley.作者: burnsy562000 时间: 2011-7-11 17:55
It should be disclosed, and it appears it isn't a bribe, but extra comp to 'hurry'.
Extra comp/gifts are a violation if it involves swaying the objectivity. Hope this helps. And get used to the fun of
that is CFAI ethics test questions. Haha. All 3 levels are as gray as ice cream and @#$%&.
