You are a US asset manager based in a foreign country where local law prevents disclosure of client confidential information by financial institutions. US authorities suspect one of your clients of illegal activities and ask you for confidential information about this client. You provide the US authority what they have asked for. Are you in compliance with CFAI codes and standards?作者: liangfeng 时间: 2011-7-13 13:09
no because he must comply with the stricter of CFAI standards and local law which in this case in the local law.作者: oneboy 时间: 2011-7-13 13:09
No
NO EXCUSES作者: zwjy 时间: 2011-7-13 13:09
Answer pls
I wud say no in exam but wud not sure作者: IAmNeil 时间: 2011-7-13 13:10
looks like a conflict between local and foreign ( US ) law, not a conflict with CFAI standards at all. Go with local i.e. do not disclose作者: liangfeng 时间: 2011-7-13 13:10
disclose作者: Analyze_This 时间: 2011-7-13 13:10
It is true that you have to comply with the more strict law. In this case the US law is stricter. I would say, you should disclose.作者: Windjammer 时间: 2011-7-13 13:10
no disclose comply with local law作者: Valores 时间: 2011-7-13 13:10
im with no disclose for exactly the reason Kwon said作者: Zestt 时间: 2011-7-13 13:10
My answer is disclose.
CFASniper,
It would be nice if you can answer to this作者: justin88 时间: 2011-7-13 13:10
To disclose or not to disclose are clear opposites and are not to be confused with the "more strict" rule.
Where there is conflict, local law supercede.
The "more strict" rule often refer to measures of materiality or judgement.
And finally, you need to know the applicable law before you can contemplate using the "more strict" rule, OP did not disclose that, and that is the curve ball.作者: jmh530 时间: 2011-7-13 13:10
just read this in v1, must comply with local law and not disclose
great question作者: Roflnadal 时间: 2011-7-13 13:10
Standard 3E. Schweser page 48. "Must keep information about current, former and prospective clients confidential unless: 1. The information concerns illegal activities on the part of the client or prospective client 2...."
does this not apply?作者: strikethree 时间: 2011-7-13 13:10
You can not break the law!!
By disclosing you are breaking the law!
When you disclose the clients name, you can tell your prison inmate how "ethical" you are.
So ya, no disclose. Any other answer makes zero sense.作者: infinitybenzo 时间: 2011-7-13 13:10
I say you disclose because the CFA curriculum states that if "the information concerns illegal activities by the client, however, the member or candidate may have an obligation to report the activities to the appropriate authorities." So CFAI is telling us we may have to come forward with the information even without someone asking for it. The question doesn't state what the suspected illegal activity is, so we can't assume that the US has no jurisdiction. DISCLOSE!
