Clearing up some ethics... because, question, understand, profession

busprof

Hey Guys,

I was reading a question about this guy had some medicals bills to pay for his wife, but couldn't so he filed for bankruptcy. He doesn't have to disclose this because it doesn't reflect his work.

(1)I understand fraud charges and dishonesty but what about a felony charge, even though if it doesn't relate to his profession.


(2)Suitability: If Portfolio manager makes a recommendation for a certain stock. Which is more ethical, emailing it to all her clients or emailing it to a certain people with similar risk and return.

(3)Nonpublic information: So analyst hears some non public information, he could tell the supervisor and compliance officer ONLY.

(4)Thank you gifts from clients. ANY gifts received must be reported to employer.

Lastly, when does must client need a written consent.

chetan86

Maybe I miss sth critical here. Let me just clarify what my understanding.

The relationship btw the portfolio/investment mgr and his client is governed by the IPS. The IPS should spell out in details (among others) what the manager can and cannot do. The IPS is updated as the client and market situation changes.
If IPS forbids the mgr to do sth, and he is convinced it is best for the client, he would have to have agreement from the client (written consent would be natural here).

ramzes

Re: Last question.

What I meant to say is when does portfolio manager need a written consent and when it is ok for just a verbal consent.

studyn

My rule of thumb is to always default to the stricter rule if in doubt. It has worked well so far.

ps.

e36 or e46?

__________

"good personality ... or he was known as Lt. Mandingo during his army days."