Dwight Wrote: ------------------------------------------------------- > disptra Wrote: > -------------------------------------------------- > ----- > > You do not mix code with standard. That is what > > they are asking. There are no tricks here, 3 > > paragraphs in CFAI book is enough to cover > this. > > Read it again. The consensus is (and I agree) > that the question was asking whether to combine > the CFA Code with the Firm’s Code. There was no > mention of compliance, which is what the CFAI book > references. I read firm’s standards or at least code and standards. I am pretty sure it mentions standards there. I guess we can keep on arguing and nobody will see the problem again. Also there are a lot of differences in ethics between 5050 and 6060. If you have 6060, you could be right, too.
From Page 9, Volume 1 of the curriculum: “CFA Institute does encourage firms to adopt the Code of Ethics and Standards of Professional Conduct as part of their firm code of ethics. There are no formal procedures for adopting the Code and Standards but those who claim compliance should fully understand the requirements of the Code and Standards” So if they basically say “I encourage you to adopt our code as part of your firm’s code of ethics, and there are no guidelines for implementing this”, then how can they say, for exam purposes, that it’s not allowed?
SanFranMatt Wrote: ------------------------------------------------------- > From Page 9, Volume 1 of the curriculum: > > “CFA Institute does encourage firms to adopt the > Code of Ethics and Standards of Professional > Conduct as part of their firm code of ethics. > There are no formal procedures for adopting the > Code and Standards but those who claim compliance > should fully understand the requirements of the > Code and Standards” > > So if they basically say “I encourage you to adopt > our code as part of your firm’s code of ethics, > and there are no guidelines for implementing > this”, then how can they say, for exam purposes, > that it’s not allowed? They can’t, because it is allowed.
is it just me or does anyone else recall the question referring to combining the firm’s code with its compliance procedures? it was within the research item set. i assume it was referring to the firm’s research compliance procedures.
slash, you play a mean guitar and i wish you were right since i also put can’t combine, but we’re -1 on this. i’m pretty sure it was code of ethics for the company w/ cfai code of ethics. low blow that this part comes in the “optional” read vs the complaince no-no mixing in the you should read this part, but such is life. we’ll have to win that point back elsewhere. like hil-hil did to obama, i’m conceding this point. yes we can.
Si Se Puede!
Slash Wrote: ------------------------------------------------------- > is it just me or does anyone else recall the > question referring to combining the firm’s code > with its compliance procedures? it was within the > research item set. i assume it was referring to > the firm’s research compliance procedures. That is how I thought the question was asked.
mwvt9 Wrote: ------------------------------------------------------- > Slash Wrote: > -------------------------------------------------- > ----- > > is it just me or does anyone else recall the > > question referring to combining the firm’s code > > with its compliance procedures? it was within > the > > research item set. i assume it was referring to > > the firm’s research compliance procedures. > > That is how I thought the question was asked. I thought the same thing too but who knows. Cant see the question anymore and might had just misread it. Going to put -1 for me. Still in the 80% bracket for the entire exam.
disptra Wrote: ------------------------------------------------------- >I guess we can keep on arguing and nobody > will see the problem again. Don’t be so sure - those of us who didn’t pass may well see the question on the Mock Exam (after paying $100) next May. Then we can look back at these posts, chuckle and smile knowingly. Good times.
I took the 6060 paper in Asia, and I remember quite clearly that the vignette referred to combining the Code with Compliance procedures. From page 95 in the Standards of Practice Handbook - Ninth Edition 2005; “Commingling compliance procedures in the firm’s code of ethics will diminish the goal of reinforcing with the firm’s employees their ethical obligations. Stand-alone codes of ethics should be written in plain language and address general fiduciary concepts, unencumbered by numberous detailed procedures directed to the day-to-day operation of the firm.” “Separating the codes of ethics from compliance procedures will also reduce, if not eliminate, the legal terminology and boilerplate language that can make the underlying ethical principles incomprehensible to the average person.” From this, it is quite conclusive that you CANNOT combined the code with compliance… if the 5050 version in the U.S. refers to something other than combining code with compliance, then I haven’t got a clue.
how is this settled? There seems to be contradicting text from even the CFAI???
Guys, the way i see it, if it causes that much confusions between us. i would not be surprised if they throw away this question. they have done in the past.
lets not confuse ourselves… the question was about combining the codes of ethics with co.'s compliance document. Which is not recommended by cfa. but you can combine cfa codes of ethics which your company’s codes of ethics.
Completely agree 
born2b Wrote: ------------------------------------------------------- > lets not confuse ourselves… > > the question was about combining the codes of > ethics with co.'s compliance document. > > Which is not recommended by cfa. but you can > combine cfa codes of ethics which your company’s > codes of ethics. Not on my exam. Mine specifically asked about them combining it with the CFA’s code of ethics, mentioning that they were basically going to use the code of ethics as their company’s code and tweak it to be company-specific.
I think we should write to CFAI about this question… Every question in Ethics counts more than in any other section… esp since the answer to this is in the optional segment of the text… What do you guys think?
there you said it, even your version of the question is right, under no circumstances you can tweak the cfa codes of ethics. no no on this you can either adopt the cfa codes and comply with or not … remember the difference b/w co’s codes of ethics and compliance document. they are completely different docs. I am 100% sure and remember them asking the combination of compliance codes and cfa codes NOT co’s codes and cfa codes.
born2b – I think everyone here is correct with the version of the question they got because I think there were different questions on different versions of the exam (5050 vs 6060). The point is that if the question was to combine CFA code with company code, that question is from the optional reading segment and shouldn’t it be disqualified/thrown out? Shouldn’t one of us write to CFAI about it?
born2b Wrote: ------------------------------------------------------- > there you said it, even your version of the > question is right, under no circumstances you can > tweak the cfa codes of ethics. no no on this you > can either adopt the cfa codes and comply with or > not … You can absolutely tweak/modify them to fit your company’d code of ethics. They were essentially adopting the CFA’s code of ethics and modifying it to fit the company. There are no formal procedures for this, so tweaking/modifying it is fine. It doesn’t say anywhere that you have to either adopt the CFA code (with no company-specific modification) or you can’t use it at all. If the company was deleting parts then maybe that would be problematic, but the Item Set mentioned that they were adding some company-related parts.
*BUMP*