Which of the following individuals is in violation of the Code and Standards? a) Analyst A charges a fee for principal trades conducted with institutional clients, not retail clients. This is documented and disclosed to every client. b) Analyst B recreated a model developed at his prior firm using his memory, not records. c) Analyst C decides to become a part time personal trainer on the weekends and does not disclose this to his employer. He covers fitness equipment manufacturers.
C
C
Definately not B C I don’t see why he has to disclose it… not like he is providing investment advice AND it is on weekends… A I believe is in violation because of fair dealing. They are treating institutional clients better than retail. If retail had a choice of service then it would not be a violation. My choice is A
Its def not B. I guess A
B can not from memory and he should rebulid it
A is not violation of fair dealing. Definitely acceptable to do principal basis on institutional side and commission on retail. Otherwise we wouldn’t have a market. It is also fully disclosed to clients allowing them to select another service level and pay differently.
should be B if he can use memory then he can rembember a lot of privacy documents and recreat them easily , can not use memery or documents from prior employer
Sorry goodman it isn’t B… 99.99% sure. It clearly states that any knowledge learned on the job is yours and you are able to use it elsewhere…
You can use your memory to create similar models. I remember getting a question wrong ont hat before.
I am 100% sure it it B for I remember I readed it in curriculum and seldom I will forget it.
goodman2011 Wrote: ------------------------------------------------------- > I am 100% sure it it B for I remember I readed it > in curriculum and seldom I will forget it. Well if you readed it and are 100%…
you can use public material , or visit target company , but you can not use memory
This goes back to last years discussion about the waitress who got the job. CFAi books stated if it was expected to take a large amount of time even if on the weekend it must be disclosed assuming there were times when the analyst may have to come into work on the weekend.
Goodman: Virtual beer for who is right on this. I don’t think its B and I’m stickin to it 
Paraguay: If what your saying is correct, I’m switching my answer, but this is a dirty question then lol.
From the book The member or candidate cannot use historical recommendations or research reports created at the previous firm because the supporting documentation is unavailable. For future use, the member or candidate must re-create the supporting records at the new firm with information gathered through public sources or directly from the covered company and not from memory or sources obtained at the previous employer.
can’t see how this could be B, I’m in the C camp
goodman2011 Wrote: ------------------------------------------------------- > From the book > The member or candidate cannot use historical > recommendations or research reports created at the > previous firm because the supporting documentation > is unavailable. For future use, the member or > candidate must re-create the supporting records at > the new firm with information gathered through > public sources or directly from the covered > company and not from memory or sources obtained at > the previous employer. That is research reports, not a model, research reports require huge amounts of supporting documentation. If you created the supporting documentation you could write the exact same report. Happens when analysts switch companies and keep the same rating and PT.
I too am in the C camp. He can have differential treatment if it is disclosed to every client. He can recreate model from memory.
C