标题: Ethics Question - Please answer and I will stop studying [打印本页] 作者: Muddahudda 时间: 2011-7-13 14:51 标题: Ethics Question - Please answer and I will stop studying
I alway get this confused and want to make sure I have this right....
If a client offers you additional compensation for achieving some set results each....you notify in writing to the employer...however, dont have to get approval.
If you work at a firm as PM and want to take on additional independent clients while still working at your current firmm, you MUST receive written approval from all parties involved.
correct?作者: mp3bu 时间: 2011-7-13 14:52
yes, and yes作者: aidebaobao 时间: 2011-7-13 14:52
written approval needed for both but if you take the comp in first case you are still in violation of code because of independent and objectivity not due to disclosure of conflict and additional comp. arrangement as you would be if you did not get approval.作者: ohai 时间: 2011-7-13 14:52
N.VanCandidate Wrote:
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> written approval needed for both but if you take
> the comp in first case you are still in violation
> of code because of independent and objectivity not
> due to disclosure of conflict and additional comp.
> arrangement as you would be if you did not get
> approval.
bro, you can definitely accept additional comp from a client....CFAI txt vol 1 page 75 - example 1
but I think you are right that written consent is required for both....作者: strikethree 时间: 2011-7-13 14:52
N.VanCandidate Wrote:
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> written approval needed for both but if you take
> the comp in first case you are still in violation
> of code because of independent and objectivity not
> due to disclosure of conflict and additional comp.
> arrangement as you would be if you did not get
> approval.
Wrong. You can accept additional comp. How it affects your judgment is the issue. With only that amount of info, there is no violation作者: susana 时间: 2011-7-13 14:52
BlueCollarHero Wrote:
-------------------------------------------------------
> N.VanCandidate Wrote:
> --------------------------------------------------
> -----
> > written approval needed for both but if you
> take
> > the comp in first case you are still in
> violation
> > of code because of independent and objectivity
> not
> > due to disclosure of conflict and additional
> comp.
> > arrangement as you would be if you did not get
> > approval.
>
> bro, you can definitely accept additional comp
> from a client....CFAI txt vol 1 page 75 - example
> 1
>
> but I think you are right that written consent is
> required for both....
Yes. It says consent is required, so that means written consent from employer, never verbal.作者: lcai 时间: 2011-7-13 14:52
Is in it that you can accept additional compensation if it is for past performance but not if it is to entice you to do better in the future because that would put you at a risk of violating independence & objectivity as you will probably favor that client's account which also brings in the issue of fair dealing...作者: Analyze_This 时间: 2011-7-13 14:52
Does anyone have a bottom line on this?作者: Unforseen 时间: 2011-7-13 14:52
Without additional info, you can't make that assumption. The debate is, can one accept additional compensation? Yes absolutely. As far as the requisite action to take before accepting it, it's been answered.作者: nannan66 时间: 2011-7-13 14:52
Straight out of the CODE:
"Do not offer, solicit, or accept any compensation that could compromise independence or objectivity"作者: bkballa 时间: 2011-7-13 14:52
You CAN accept the additional comp provided you disclose it to your employer and receive written permission.
Part of the reason you need written permission is that if there is an additional comp agreement your supervisor must ensure you are not violating both objectivity and fair dealing statutes by showing bias to one client in regard to trade/IPO allocations and the like.作者: ohai 时间: 2011-7-13 14:52
I'm not disagreeing with that, NVC.
Accepting additional comp on its own does not imply that it's a violation. The OP's scenario is not a violation on its own.
By your logic it's a violation to make a trade. Why? Because the trader potentially used insider info. Or he traded for his account before his client's. Or he only bought a stick for a specific client when it was suitable for all. Context context.作者: cityboy 时间: 2011-7-13 14:52
ok lets all agree that:
1. must get written approval for both cases
2. a bit ambiguous with the context - that never happens on CFAI exam as we all know so no worries there ;)
3. BlueCollar can now stop studying
good luck all
NVC作者: skycfa 时间: 2011-7-13 14:53
Yes I agree. The most important point being #3.
Good luck to you too作者: oneboy 时间: 2011-7-13 14:53
N.VanCandidate Wrote:
-------------------------------------------------------
> ok lets all agree that:
> 1. must get written approval for both cases
> 2. a bit ambiguous with the context - that never
> happens on CFAI exam as we all know so no worries
> there ;)
> 3. BlueCollar can now stop studying
>
> good luck all
>
> NVC
Couldn't agree more on #2 above.
Never ambiguous..never...always clear.作者: liangfeng 时间: 2011-7-13 14:53
boston21 Wrote:
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> i think you need the written permission if they
> say "you can use my wife for a few nights if you
> get my portfolio a 10% return next year"
>
> but if they just give you something, you just
> disclose it
I dont think I agree. We need to disclose the incentive clearly.
The pharase 'Few nights' is not ok. We need a real number here.作者: PalacioHill 时间: 2011-7-13 14:53
A few pages after my quote, there is a practice problem where the correct answer requires written consent from employer.
if you receive say a aspen condo apartment for a week for delivering good perf. for cleint A, you need written approval from employer, but do you have to disclose to other clients as well?
