If you are, what did you do to prepare? I have read the CFAI book twice and done the EOC questions twice but am consistently scoring about 4/6 on the practice CFAI ethics item sets. Is there a better source to reveal CFAI’s thought process on the subject?
I gotta say, they are very frustrating. even when I think I know a rule, they throw some bullshit in the question. perfect example: I just finished reading the asset manager code, and remembered it said managers “should retain records client for at least 7 years.” So then I see this: Bukenya then reviews Jacaranda’s record-keeping policy. Currently, the policy requires retention of hard copies of all supporting documentation for investment recommendations and decisions made during the last five years. This policy meets the new risk-based regulations. Client meeting minutes and communication logs are kept electronically and backed up on a remote server. Fund managers and research analysts are responsible for maintaining their own personal notes and research models. This policy also applies to Jacaranda’s independent research contractor, Mathew Ochieng, who (for security reasons) does not have access to the company’s server. Ochieng, who only undertakes research for Jacaranda, sends his research reports to the head of research, who then archives these electronic copies. the question is: the record keeping polict is most likely in violation of Record Retention with regard to: a) retention of personal notes and research models b) retention time frame c) keeping of hard and electronic copies so I went with B, cuz I literally just finished reading the 7 year thing. Turns out the answer was A, and the wording “should” in the 7 year thing implies it’s just a recommendation, and as long as the legal time is met, you are still compliant. The reason it’s A: he’s sending the research reports only, but not any of the the supporting documents and/or models. Basically it’s horseshit. I don’t think the question tests my knowledge of ethics, I think it’s a test of imagination with respect to semantics & technicalities.