I found this to be an interesting Ethics question, so figured I’d share: A CFA Institute member works for Secure Securities, Inc., and plays rugby on the firm’s rugby team. Secure Securities’ team recently played the team of a rival firm. During the game, a fight broke out and the CFA Institute member was the instigator, but no one was seriously hurt. Is this a violation of I(A) concerning maintaining knowledge and complying with laws, rules, and regulations? A) Yes, because the member could have hurt someone in the fight. B) No, because a fight at a rugby game is not a professional activity. C) No, because no one was seriously hurt. D) Yes, because the member is bound by the Code of Ethics.
Questions like this crack me up. Anyway, it’s definitely a violation, but not because the member didn’t maintain knowledge of the law, but because instigating fights reflects poorly on the integrity of the member and the profession as a whole. So D.
I’d say it’s B… HE might have broken the rules of sportsmanlike conduct, but on the professional level he did not…I(A) relates to the rules, laws, regulations governing the professional activities and everything directly related to such activities (with the course of the job/work/etc…) Which one is the right answer xavier?
it is D – reflects poorly on the member – because the member is bound by the Code of Ethics.
right answer is D. Standard I(A) requires that a CFA Institute member obey the Code of Ethics. Among other things, the Code says the member shall act with respect and in an ethical manner with the public and colleagues ----- this question cracked me up b/c i thought if this is the case, i know alot of people who violate the ethics code. i’ve witnessed numerous fights break out during a company basketball game. and when cooler heads prevail, i never heard anyone say, i can’t believe he just violated the cfai code of ethics.
I dont get it. The above examlpe has nothing to do with profession misconduct. The example below is on similar lines and has a diff explanation: Example 4. Carmen Garcia manages a mutual fund dedicated to socially responsible investing. She is also an environmental activist. As the result of her participation at nonviolent protests, Garcia has been arrested on numerous occasions for trespassing on the property of a large petrochemical plant that is accused of damaging the environment. Comment: Generally, Standard I(D) is not meant to cover legal transgressions resulting from acts of civil disobedience in support of personal beliefs because such conduct does not reflect poorly on the member or candidate’s professional reputation, integrity, or competence. ------------------------------------------------------------------------------------------------------------ This guy got jailed for his activity but he has not violated the Code of Ethic still, however those players who got carried away with the game did. WHats the rule of thumb here?
It’s a bit of a judgment call how serious an offense has to be in order to qualify as a violation. The rule of thumb though, is ANY activity that projects poorly on a member’s integrity (and as a result on the industry as a whole), is a no-no.
We’ve discussed this question numerous times including the following separate threads: http://www.analystforum.com/phorums/read.php?11,531462,531462#msg-531462 http://www.analystforum.com/phorums/read.php?11,529041,529067#msg-529067 http://www.analystforum.com/phorums/read.php?12,536985,537064#msg-537064 http://www.analystforum.com/phorums/read.php?13,526592,526972#msg-526972 This is a totally idiotic question that contradicts many of the other questions (e.g., according to Schweser you can beat up your neighbor at the family barbecue or get arrested for shoplifting and be fine because this is not a professional activity, but beat up that broker from UBS at the rugby game and there’s a problem.). Just stupid - move on.