If an analyst visits a company and allows the company to pay for the transportation and hotel expense(not lavish), is this a violation or not? I remember doing a practice question and the answer says this is ok, but the handbook says “When attending meetings at an issuer’s headquarters, members or candidates should pay for commercial transportation and hotel charges.” Should??? I really hate the ambiguity of some of the ethics material.
Accepting any gift or favour done to an analyst by the subject organisation which is likely to influence the research report of the analyst shall lead to violation of Std 1 B If the gift/ favour is nominal or is not expensive enough to make the analyst compromise her independence and objectivity then it should be accepted . Thus she shouldnt accept favours like accomodation or commuting via subject company jet even if she decides to make a full disclosure to her employer then also it leads to Violation of Std 1 B. Thanks,
Whats crappy is that that explanation is subjective based upon what will compromise the analyst. Other factors should include whether the trip was for business only or if it was for business and personal. Also try to determine if the furnishings were lavish or not. Finally, if the business were located in a remote place then it would be expected that the company would pay for the transportation there. If the trip was for business only and the furnishings normal then I would side with not violating the code.
I’ve seen these questions too, sometimes a violation sometimes not. IMHO, if you are visiting a Casino operator in Las Vegas (major city accessible via chartered flight) you should pay for your own flight, and if they offer to put you up in their hotel, you should refuse. If you were visiting mineral refiner on the west coast of Australia in a remote area, you could accept chartered air accommodations and reasonable lodging. This should be fully disclosed (goes without saying).
I still miss these but what I’ve found is that if the question makes a real point to make sure you know that the factor or wherever is in a REMOTE location that is “only accessible by private jet” or something like that, then it is OK. Ohterwise, violation. If anybody really knows this topic and can either confirm/deny this, that would be great. I wrote this before reading the post above me, but this post says pretty much the same thing.