标题: ROS vs Priority of Transactions [打印本页] 作者: chunty 时间: 2011-7-11 19:22 标题: ROS vs Priority of Transactions
In the CFA ethics book did anyone notice that while question #26 p158 allows a PM to sell (when contracy to the firm's recommendation) as long it doesn't disadvantage current clients, question#6 p225 (in the ROS section) prohibits trading in a manner contrary to employee or firm's most recent recommendations. Is this an inconsistency - if not I didn't realize ROS could differ so much from the Standards. I didn't see either question on the errata. Please advise.作者: liquidity 时间: 2011-7-11 19:22
Can someone please advise on this? Just to clarify the question is over personal trades.作者: wxs1986 时间: 2011-7-11 19:22
Per Andrew .."John the PM had to sell XYZ stock to pay his kid's medical bills, and he personally didn't write the recommendation, what's the big deal"
That's exactly what I thought. In question#6 p225- Kepsh sells shares to pay for a wedding anniversary gift for his wife. Is this restricted because it's a gift not a being used for financial hardship? The solution only states that its a violation because it's contrary to the employee's or firm's recommendation. In question #26 p158 the PM is selling to cover child's tuition. The solution states POT does not limit employee trading that differ from recommendations.
