Is there any limit, above which disclosure of client’s gift need to be done? Or should the disclousure be done whatever the value of the client’s gift?
I believe under the standards, any gift that would or could be perceived as obstructing objectivity must be disclosed. Best practice is to disclose everything.
Under the asset manager code of professional conduct, the employer must determine the threshold value of a token gift before the fact and apply it consistently. Cash is always prohibited
I though I read somewhere that $100 cash was still ok, no?
100$ threshold is now gone.
thanks you folks. So looks like no threshold value.
Also, is a weak barrier between the research department and investment banking department a potential source of conflict ?
Yes. If there are no barriers or firewalls, information will flow from one dept to the other. This creates the opportunity for insider trading or for preasure put on my I Bankers on the analysts to keep positive views on certain companies.
Yes, need Firewalls.