What should be the members reaction if he 1. knows the law has been broken 2. FEELs the law has been broken Should he tell the SEC/supervisor/legal council/both I have an answer to this question.
if you know the law has been broken, you tell your supervisor. if you feel the law has broken, you can seek guidance from legal council to confirm or go to the supervisor. i haven’t seen a case where you’d bypass all that and go straight to the sec. i’m not sure that i’m right, i’ve sucking on ethics.
there is no compulsion to go the SEC on your own -ever. even if you know and confirm that there is violation of some securities law. if the SEC asks you for information regarding illegal activities, then you are obliged to provide all information even if it is ‘confidential’ customer information
to add on to dyslexic, if the cfa institute asks you for info, whether you have a confidentiality agreement or not with a client, you have to give it up. i had trouble with this one.
cfasf1 Wrote: ------------------------------------------------------- > to add on to dyslexic, if the cfa institute asks > you for info, whether you have a confidentiality > agreement or not with a client, you have to give > it up. i had trouble with this one. Just remember that the CFAI owns us. That will clear everything up.
The answer is Feel - Council Know - Supervisor Logically that seems a little backward. If you KNOW of a violation you’d think the council would be there to handle it. Isn’t that kinda their thing.
thepinkman Wrote: ------------------------------------------------------- > The answer is > > Feel - Council > Know - Supervisor > > Logically that seems a little backward. If you > KNOW of a violation you’d think the council would > be there to handle it. Isn’t that kinda their > thing. You are going to council because you are unsure and need a legal opinion. You report to supervision when you don’t need an opinion.
think of counsel as the counselor, the person you go to when you’re conflicted. think of supervisor as the vice principal, the person you go to when you’re over your conflicts and ready to snitch.
I suppose I always think of council as the enforcement arm as well. But they’re really not.
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