Ethics Question: Receiving Gifts

Yes, I am already studying for Level II… Lets not get into the merit of my study strategy… So, you are allowed to receive “Token Items” but you are not allowed to receive gifts from “non clients”… But, I dont imagine I am supposed to send a muffin basket (or bottle of scotch) back when a supplier wants to thank me for my business…?

token items are ok gifts from clients if you fully disclose to employer can be ok (see pg 15 code of stds and examples 6/7 on pg 22) so for non-clients- where are you seeing that they’re not ok in the handbook? i’d love clarification on this one also. i can’t friggin believe i’m thinking about ethics right now. this is good though. back on the horse, back on the horse. i like muffin baskets and while i’m not a huge scotch fan, would take most other alcohols in exchange for a hot IPO allocation (wink, wink)… violation! my last question- is it common now to johnny with 2 n’s? i always thought it’d just be johny but then #18 popped onto the red sox scene and i was ok with the alternative spelling. i’m not as fond anymore since he’s in a yanks uni, but i think in the end they will have overpaid for him as the wheels fall off of that bus so it’s ok.

As a Jon myself (note that I don’t even have an H since it’s short for Jonathan…but that’s an entirely different issue) I’d have to say that it’s usually with two n’s i.e. Johnny Cash, Johnny Carson…etc… I’m a little more worried about our man Josh Beckett…what’s the deal? Oh…and back to CFA…I don’t recall anything about non-clients off the top of my head. Maybe that’s why I failed?? Anyhow, if somebody else would care to shed some light on this issue…and anything else related to the RedSox, please…by all means.

I was watching the Schweser videos… Its supposedly not ethical to accept gifts from people who could influence you… But I reinerate…: what about token gifts…? Ya, Johnny is definetely spelled properly…

banny, you started studying again already??

ha, no… but i can find the CFA handbook on the CFA website with the best of 'em and the search function on it is pretty easy. I do plan to start early and go slowly. I never have been a go hard during the week girl. going to tackle quant 1st, so eager L1’ers that just passed and are already studying or repeaters, feel free to say hello in Sept/Oct- I will be inching my way through quant. no doubt, will have many questions.

you scared me for a second with all the CFA ethics knowledge lol…I’m going to start studying soon as well but probably more in oct-nov just because I know i will forget it all if I start now. Looking forward to kicking some CFA @$$ this time around with you and all the fellow level 2-ers :slight_smile:

Hey, thanks for all the info guys…

Here is the hard and fast. Gifts from clients (ie I’ll give you a car if you beat the index this quarter) are ok as long as disclosure and approval are received from supervisors beforehand. Otherwise a potential conflict of interest is there to ‘favor’ that client. Gifts after the fact (A trip to FL for a great quarter!) only need disclosure, not approval. So there are two different variables to beware. Gifts from non clients is synonymous with soft dollars. Token items are ok (I have a UBS mug that was a gift from a non client), but lavish dinners, sporting events, trips, etc are NOT. They are no longer thanking you for business but rather trying to cloud you judgment about what is best for the client. You would not use the vendor if you didn’t have clients, hence, the end benefit of soft dollar arrangements need to go to the client.

Ditchdigger, Great explanation! Thank you…! Are you a level III candidate? Btw, I don’t imagine that you have to disclose token items?

johnnyblazini Wrote: ------------------------------------------------------- > Ditchdigger, > > Great explanation! Thank you…! Are you a level > III candidate? > > Btw, I don’t imagine that you have to disclose > token items? Um, I’m a repeat Level 1 Candidate. I’m hanging onto this board since I plan to be a L2 2009 candidate. Token items need to be reported as well.

Which tranche did you fall in?