Can any one please help me out with this ethics concept-
If we get someone to do our research and we make a decision based on this report without checking the veracity or conducting any research ourselves, are we violating any or all of Independence and Objectivity, Misrepresentation and Misconduct?
Thanks作者: Otabek 时间: 2011-7-13 13:08
Yeah, you are violating Diligence and Reasonable Basis. There is a gray area here, because it could involve delegation of duties, which is allowed under New Prudent Investor rules.作者: maryli 时间: 2011-7-13 13:08
eh, it's not really grey there west. you delegate when you somebody else has more competence/expertise in the area you do (like for a special situation for the trust). as long as you've done your diligence to assert they add value and are worth the cost, that is fine.
if it's delegation to a subordinate or an outside source (not a skilled consultant), then you have to check that their conclusions and basis are reasonable and justifiable when you rely upon it.作者: defour44 时间: 2011-7-13 13:08
Long story short, Ethics is the toughest section on there IMO, and no amount of studying can really put your mind at ease. Too much subjectivity in the questions...
Law of diminishing returns. Don't spin your wheels grinding on this material when you could be memorizing Equity formulas.
When in doubt, choose the safest and most complete answer. You'll probably be fine.
