Came across a question that still bugs me. Individual gets drunk at a client outing (question clearly states he is intoxicated and widely recognized to be so). He is subsequently arrested for drunk driving on his way home. The answer stated he is not in violation of any aspect of the code, which seems absurd. 1) Being clearly drunk reflects poorly on him as an investment professional with his clients. 2) Being arrested for drunk driving seems a clearly legal violation (answer stated it wasn’t a violation since he wasn’t convicted, only arrested, despite the fact that the question did clearly state he was drunk, so there’s no denying he was in violation of the law… similar logic would be a man seen murdering someone who is arrest and saying he’s ‘not in violation of the code’ until he’s convicted" What do other’s think?
Don’t think. Drinking and driving is a poor decison ie lapse of judgement. No one is perfect. The code of ethics implies actions during the workday (drinking during lunch) or premediated actions after work (money laundering operation). Having a few too many and crashing into a tree is not technically in violation of the CFA Code of Ethics.
It’s also clearly a violation of law (most US states, not sure international protocol here)
Breaking a law like murder is quite different than say speeding, dwi, disorderly conduct, etc. If the CFA required a clean slate, I don’t think many charterholders would exist. I was a bit ashamed of my few infractions upon accepting an offer at my firm. The HR rep assured me that 80% of employees had something on their record (open alcohol container, minor consumption, dwi, etc) from the good ol college days. Light misds. are generally ok from what I have read, felonies are not.
I am also confused on this one. I think this is from Book 6 or Qbank … So, if convicted its a violation, merely getting arrested is not. F! this still bothers and confuses me !
A convicted felony or financial related crime would be a violation. Getting a DWI conviction after driving into a tree, it happens.
I guess I can see what you’d mean by it being a minor infraction. However, in the same breath, I’ve seen ethics questions that state an individual who did absolutely nothing wrong and was in no way a party to an illegal action was in violation of the code because he was unaware of a certain law, even though it had no bearing on his actions. Yes, these have been from schweser, so I’m highly suspicious of some of the code interpretation. My conclusion based on the 2 questions I’ve sited would lead me to believe that there’s nothing wrong with getting tanked in front of your clients and getting arrested on the way home, but if you were unaware of an obscure securities trading law that had no impact on your professional activity, you could lose your charter. Augh. Let’s just hope it’s a schweser thing.
http://www.cfapubs.org/doi/pdf/10.2469/ccb.v2005.n3.4000 From SOPH Whereas Standard I(A) addresses the obligation of members and candidates to comply with applicable law that governs their professional activities, Standard I(D) addresses conduct that reflects poorly on the professional integrity, good reputation, or competence of members and candidates. Although CFA Institute discourages any sort of unethical behavior by members and candidates, the Code and Standards are aimed at conduct related to a member or candidate’s professional life. Any act that involves lying, cheating, stealing, or other dishonest conduct that reflects adversely on a member or candidate’s professional activities would violate this standard. Conduct that damages trustworthiness or competence can include behavior that may not be illegal but could negatively affect a member or candidate’s ability to perform his or her responsibilities. For example, abusing alcohol during business hours could constitute a violation of this standard because it could have a detrimental effect on the member or candidate’s ability to fulfill his or her professional responsibilities. Personal bankruptcy may not reflect on the integrity or trustworthiness of the person declaring bankruptcy, but if the circumstances of the bankruptcy involve fraudulent or deceitful business conduct, it may be a violation of this standard. Individuals may attempt to abuse the CFA Institute Professional Conduct Program by actively seeking CFA Institute enforcement of the Code and Standards, and Standard I(D) in particular, as a method to settle personal, political, or other disputes unrelated to professional ethics. CFA Institute is aware of this issue, and appropriate disciplinary policies, procedures, and enforcement mechanisms are in place to address misuse of the Code and Standards and the Professional Conduct Program in this way