Two short ethics questions investment, principles, corporate, maintain, anywhere

ASSet_MANagemen

Book 1 Page 238 #2 and #7

Members and candidates must:

a) endorse the principles of sound corporate governance
b) foster the expansion of regularity oversight
c) strive to maintain and improve the competence of other investment Professionals


Answer is C. I think all the answers are crappy, but I picked A because I felt that some of the Standards apply to good corporate governance particularly for Charterholders who are on Boards. But anyway is answer C actually listed anywhere in the Code and Standards or is it just an implied rule?




Non-public information is material if it:

a) violated client confidentiality
b) would affect the price of a security
c) has not been fully disclosed to all market particpants.

Answer is B. Why is C wrong?

cityboy

Maintain and improve their professional competence and strive
to maintain and improve the competence of other investment
professionals.


Literally word for word from the Code of Ethics.



Edited 1 time(s). Last edit at Wednesday, June 1, 2011 at 04:16PM by Paraguay.

jmh530

The third statement is actually regards to it being non-public, and doesn't make any reference to it's materiality.

oneboy

ok second question was a dumb mistake.

on first one, can you tell me where that is in the code?

thanks.

aidebaobao

the show NY Wrote:
-------------------------------------------------------
> Book 1 Page 238 #2 and #7
>
> Members and candidates must:
>
> a) endorse the principles of sound corporate
> governance
> b) foster the expansion of regularity oversight
> c) strive to maintain and improve the competence
> of other investment Professionals
>
>
> Answer is C. I think all the answers are crappy,
> but I picked A because I felt that some of the
> Standards apply to good corporate governance
> particularly for Charterholders who are on Boards.
> But anyway is answer C actually listed anywhere
> in the Code and Standards or is it just an implied
> rule?
>
>
>
>
> Non-public information is material if it:
>
> a) violated client confidentiality
> b) would affect the price of a security
> c) has not been fully disclosed to all market
> particpants.
>
> Answer is B. Why is C wrong?

1.) C is directly in the code, so obviously right.
2.) Lots of information is undisclosed, doesn't make it material. The CEO of McDonalds in a meeting said he had a McFlurry today and didn't like it, not material. The CEO of McDonalds in a behind closed door meeting said the McFlurry would be terminated for poor performance is material and nonpublic.



Edited 1 time(s). Last edit at Wednesday, June 1, 2011 at 04:10PM by Paraguay.