Hi just came across this scenario when the brother in law is a supplier with a company that I’m an analyst for. Does this case not require disclosure?
I think it doesn’t need to be disclosed if there’s no obvious statement indicates that the analyst and his/her brother-in-law have some arrangements to detriment to clients.
For the purposes of Standard VI(A), members and candidates beneficially own securities or other investments if they have a direct or indirect pecuniary interest in the securities, have the power to vote or direct the voting of the shares of the securities or investments, or have the power to dispose or direct the disposition of the security or investment. (Cited from CFA curriculum)
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right, that makes sense. thanks mate
How important is the supplier and the brother-in-laws position in it?
Could there be an issuer with insider information?
The brother -in-law has just seen an increase in the demand for paper clips- who cares.
or the brother–in-law has just been asked to increase production of crucial part of piece of equipment as the companty has signed a massive order (yet undisclosed to the market).
Brother-in-law regularly goes out drinking with CEO of company.
Make a judgment on the potential for insider info if any risk mention it to compliance and then at least it is on the record if something happens.
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I second Mikey’s approach here. The lower-level Ethics questions will test black-and-white law based on recall. However, the majority of questions will be unclear at initial glance, and will need a progression through relevant questions until answers can be eliminated or suggested.
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right, the question also lacked clarity. there wasnt any mention of the type of relationship so i guess it would be safe to not assume any personal relationship or chance of coming across material non public info
Certainly, in such a scenario, ethical considerations necessitate disclosure due to the potential conflict of interest. Transparency is crucial, and revealing the familial connection between you and the supplier (your brother-in-law) is vital for maintaining integrity. It ensures that your professional decisions and analyses are not compromised, fostering trust within the company and avoiding any appearance of impropriety. Full disclosure allows for appropriate steps to be taken to manage any potential conflicts and maintain a fair and unbiased working environment. The problem has been answered, let’s watch the movie sex việt to relieve stress
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sounds like a plan