the compliance department of jones and james, an investmnet advisory firm, is in the proess of pdating its firm’s code of ethic handbook. nder direct orders from the firm’s chief operating officer, the firm’s handbook mst be brought within strict complaince with the cFA institute’s code of ethis and standards of professional conduct. one of the chapters n the handbook that need clarifiation, is the one pertaining to employee’s duties to clinets.according to cfa institute standards of professional conduct, which of the following is not a reommended procedure for compliance with the code and standards? a preserve the confidentiality of client informaiton b disclose to clients all forms of manager compensation c vote proxies in the bet inerest of the clients and ltimate benefiiaries d formulate written performane measurement benchmarks for each client
I would think B. I don’t think all forms of manager compensation are required to be disclosed.
I think either B or D. Ill go with B
b for me
I love how ethics is just a guessing game.
Thats why i hate ethics(i abide by it no doubt), you can never be so sure.
from the handbook. p.56 Disclose compensation arrangements. Members and candidates should make their clients aware of all forms of manager compensation. Vote proxies. Members and candidates should determine who is authorized to vote shares and vote proxies in the best interest of the clients and ultimate beneficiaries. Maintain confidentiality. Members and candidates must preserve the confi- dentiality of client information. falls under standard III(A). loyalty, prudence and care.
answer D do not beat me, i got B wrong too. standard III(A) Althoguht establishing perforamn emeasurement benchmarks wil fulfill one of the basic reqirements of standard III© duties to clients suitabilit. it is not one of the recommended procedures for compliancne iwth standard III(A), duties to clients loyalt, prdence and care. I am not convinced. I started to doubt if this is one of the error schweser made!( plus the previous ethic question about gifts disclosure). Anyone has the error sheet for book 7?
How many times have you read the ethics? I have read schweser more than 3times and handbook once. How many times will be adequate?
i picked out all ethics questions from all possible resources to go over. i went through everything once and highlighted the tricky ones. I am planning to revisit the marked ones later. i think more importantly i need to go through the original handbook code again line by line
The problem I have is the handbook is very vague itself. A lot of “should” and “could” and “probably”
yes that is the point long. while reading i think of all those problems and situations and i cannot come up with a solution.