last one for tonight: pages 100 and 101: don´t you guys find examples 2 and 4 inconsistent? 2 = referral from trust department to personal financial management department 4 = referral from portfolio management to buying proprietary products if in both cases the employee receives a compensation, why is 2 a violation (if not disclosed) but not 4? thanks a lot
I can’t give any strong reason but think “obvious” is the key reason. 4: “… OBVIOUS to potential clients that the employees are ‘referring’ potential clients to the services of their employers.” Note that in the last paragraph of 4, “best practice … dictates that PM must disclose to clients that they are compensated for referring clients to firm products” So I agree that 4 is getting a bit grey here. Finally, I can only say that I will make my judgement from the difference in tone with the examples — “assist sales process” (in 4) sounds neutral to me, whereas simply “receives compensation for each referral … that results in a sale” sounds a bit dodgy. Sorry but I don’t have a concrete answer to your question though. - sticky
agree, this is one of the examples / questions that I will skip when reviewing, not to confuse me during the final week thx