I am not sure how there is a violation in this scenario. The scenario clearly states that the charterholder asked the regulator if a FA designation was required. Can anybody explain please?
I was just going through the answers and was wondering the same. It does not say anywhere in the text that he has to uphold the rules governing investment advisors. I just get mad at Qs like that…
This question is poorly worded. It got me too. But from my understanding of Professionalism and knowledge of the law, “Members and candidates must comply with the applicable law or regulation related to their professional activities.” I think because the person is acting like a financial advisor they should possess a license for financial advising. There is clearly conflict between the two regulators so you should go with the more strict law, which would be to obtain a financial advisor’s license. That is how I understand it, but the question is poorly presented.
i got confused by this question too, especially the guy went to see a lawyer and was told he doesnt need a license, and the code and standard doesnt require it neither… wtf Also question 12, they just implement the new procedure and she’s asking to notify the clients, but guess what ? there is a violation of communication with client here too. How come ? they just made the decision and they haven’t implemented it, the change is in process and one thing they ask her to do is to notify clients. If the actual exam is going to be subject to so poor interpretation, man we gonna burn on saturday
Along the lines of knowledge of the Law, what do we consider… i.e. I work in Country A, My client lives in Country B, We do business in Country C. Do we consider all these when assessing the most strict? (I am not sure if where the Client lives is considered…)
Matori, you just need to identify what is the applicable law then compare it to the code and standard
Good point! Apart from A and C, one more should be local law where business is conducted, not the country law only. I am not sure about B though.
I believe it is the more strict of : Standards, Country where the company (I am located), and Country where business is done…
Matori is right. Country B does not come into the picture because business is not being transacted there.
C3Po Wrote: ------------------------------------------------------- > Matori is right. Country B does not come into the > picture because business is not being transacted > there. Thanks C3Po. I had a feeling, just wanted to bring it to the table considering this thread dealt with Knowledge of the Law.
Matori Wrote: ------------------------------------------------------- > I believe it is the more strict of : > > Standards, Country where the company (I am > located), and Country where business is done… No, it doesnt matter. You only need to know the applicable law and what it states. If the applicable law is the law of the country where the business is conducted, and the law of this latter states that it is the law of the residency which apply, then you compare the home country law to code and standard.
The point was, I think, that you have to comply with the more STRICT law. One regulator said you didn’t need a license, while the other did.