This is one of those donation points…
I am not even 100% this is right. Answer C is right off cfa level II mock from 2010. There is an entire thread from last year about it and again you are allowed to recreate something as long as you can recreate the supporting documentation. Barring you took the supporting documentation. Where did you find this question, or is this like yesterday’s question where you put two answers in that were right?
C - There is no evidence to support or refute whether or not the part time position would cause a conflict of interest with the employer at this point in time. In this case, merely seeking and accepting additional employment in and of itself does not trigger the need for disclosure. In future periods, however, if the analyst has trouble balancing the time requirements of both, he should discuss this with his employer. There is an example similar to this in the book. B - The analyst cannot recreate supporting documentation from memory. They must use knowledge of the company and/or public knowledge to recreate it.
bpdulog Wrote: ------------------------------------------------------- > C - There is no evidence to support or refute > whether or not the part time position would cause > a conflict of interest with the employer at this > point in time. In this case, merely seeking and > accepting additional employment in and of itself > does not trigger the need for disclosure. In > future periods, however, if the analyst has > trouble balancing the time requirements of both, > he should discuss this with his employer. There is > an example similar to this in the book. > > B - The analyst cannot recreate supporting > documentation from memory. They must use > knowledge of the company and/or public knowledge > to recreate it. Err, what is the difference between recreating from memory and using knowledge of the company? Does that mean I need to format my “memory” when I change employers?
documentation and model are two things you refer to this V1 122 I assume . 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 my answer is still : none
bpdulog Wrote: ------------------------------------------------------- > C - There is no evidence to support or refute > whether or not the part time position would cause > a conflict of interest with the employer at this > point in time. In this case, merely seeking and > accepting additional employment in and of itself > does not trigger the need for disclosure. In > future periods, however, if the analyst has > trouble balancing the time requirements of both, > he should discuss this with his employer. There is > an example similar to this in the book. > > B - The analyst cannot recreate supporting > documentation from memory. They must use > knowledge of the company and/or public knowledge > to recreate it. They can however take phone numbers, addresses and client names from memory. That makes total sense. This curriculum has become a giant inconsistency. I also continue to believe that the quote you guys are using comes from a RESEARCH REPORT not from a model, so may not even be comparable to the situation.
pfcfaataf Wrote: ------------------------------------------------------- > documentation and model are two things > > you refer to this V1 122 I assume > . 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 > > my answer is still : none Didn’t see your edit. I agree 100%. The best answer is none. Everything else is conjecture.
Example 3 (Records as Firm, Not Employee, Property): Martin Blank develops an analytical model while he is employed by Grosse Point Investment Manage- ment, LLP (GPIM). While at the firm, he systematically documents the assump- tions that make up the model as well as his reasoning behind the assumptions. As a result of the success of his model, Blank is hired to be the head of the research department of one of GPIM’s competitors. Blank takes copies of the records sup- porting his model to his new firm. Comment: The records created by Blank supporting the research model he developed at GPIM are the records of GPIM. Taking the documents with him to his new employer without GPIM’s permission violates Standard V©. To use the model in the future, Blank must re-create the records supporting his model at the new firm (Level III Volume 1 Ethical and Professional Standards , 4th Edition. Pearson Learning Solutions 123).
bpdulog Wrote: ------------------------------------------------------- > Example 3 (Records as Firm, Not Employee, > Property): Martin Blank develops an analytical > model while he is employed by Grosse Point > Investment Manage- ment, LLP (GPIM). While at the > firm, he systematically documents the assump- > tions that make up the model as well as his > reasoning behind the assumptions. As a result of > the success of his model, Blank is hired to be the > head of the research department of one of GPIM’s > competitors. Blank takes copies of the records > sup- porting his model to his new firm. > Comment: The records created by Blank supporting > the research model he developed at GPIM are the > records of GPIM. Taking the documents with him to > his new employer without GPIM’s permission > violates Standard V©. To use the model in the > future, Blank must re-create the records > supporting his model at the new firm > (Level III Volume 1 Ethical and Professional > Standards , 4th Edition. Pearson Learning > Solutions 123). > Isn’t that a different situation though? I could see where you couldn’t write down notes about a model and take that with you, but if you just take the knowledge in your memory, I don’t seen how that’s a violation. The same process is applied in US law for things like client lists. You can’t physically take client lists with you, but you can “memorize” them and take them with you.
bpdulog Wrote: ------------------------------------------------------- > Example 3 (Records as Firm, Not Employee, > Property): Martin Blank develops an analytical > model while he is employed by Grosse Point > Investment Manage- ment, LLP (GPIM). While at the > firm, he systematically documents the assump- > tions that make up the model as well as his > reasoning behind the assumptions. As a result of > the success of his model, Blank is hired to be the > head of the research department of one of GPIM’s > competitors. Blank takes copies of the records > sup- porting his model to his new firm. > Comment: The records created by Blank supporting > the research model he developed at GPIM are the > records of GPIM. Taking the documents with him to > his new employer without GPIM’s permission > violates Standard V©. To use the model in the > future, Blank must re-create the records > supporting his model at the new firm > (Level III Volume 1 Ethical and Professional > Standards , 4th Edition. Pearson Learning > Solutions 123). > Did you miss the part that says “Blank takes copies of the records supporting his model to his new firm.” Don’t really see how this is relevant. It also states he can recreate the records supporting his model, exactly what I have said all along. What you did was just make the point that B is in no way an ethical violation. Analyst B recreated a model developed at his prior firm using his memory, not records. “To use the model in the future, Blank must re-create the records supporting his model at the new firm.” Great where in your post does it say he did not recreate the records?
That is why choice B says he created the model from memory, not records. If he recreated the records in the first place, he could’ve used those to recreate the model. Instead, he just relied on his memory. This is totally different from client lists, as one can memorize phone numbers, but to memorize a complete analytical model? Sure, he probably can remember what the main drivers are, but to recreate it completely using pure memorization is a bit of a stretch. Regardless, B is the best answer choice. Done.
bpdulog Wrote: ------------------------------------------------------- > That is why choice B says he created the model > from memory, not records. If he recreated the > records in the first place, he could’ve used those > to recreate the model. Instead, he just relied on > his memory. This is totally different from client > lists, as one can memorize phone numbers, but to > memorize a complete analytical model? Sure, he > probably can remember what the main drivers are, > but to recreate it completely using pure > memorization is a bit of a stretch. > > Regardless, B is the best answer choice. Done. The best answer is none of the above. What you also explained is diligence and reasonable basis, explaining that he can’t make the model right. How subjective do you want this to be?
that was an awful question