P.46 of Schweser states “Illegal acts by clients must be reported to authorities” P.22 of Schweser states “No requirement to report violations to authorities” Which is it?
You dont require to report unless there is a law to report
That’s still very vague… What do you mean a law to report? When is there ever a law to report?
PJStyles Wrote: ------------------------------------------------------- > That’s still very vague… What do you mean a law > to report? When is there ever a law to report? good question, dunno 
I realized in many Schweser examples where there is a legal violation, the answer is never report the violation to authorities or regulators. It’s always report to superior, compliance officer, resign from company, etc.
if you detect a violation of the law you are to dissassociate yourself from the activity. you are to report internally and consult legal counsel. At that point, if you are unsatisified with how the internal is going you report to external authorities. Generally the questions are worded that you don’t IMMEDIATLY go to authorities and i think that’s the catch. at least this is how i’ve taught me.
That’s my understanding as well. You DO NOT report to authorities, but rather inform your supervisor and consult legal counsel. There are tons of questions on this subject matter in Schweser Q-Bank.
PJStyles Wrote: ------------------------------------------------------- > That’s still very vague… What do you mean a law > to report? When is there ever a law to report? Law is different from regulations from regulators. You have to report to illegal things to authorities, but violations of JUST regulations does not require reporting to regulatory authorities. Having said that, reporting to firm legal councillor is necessary. - sticky
the get out clause is to go to your legal counselor, supervisor. God help us if a question comes up and states that you are the supervisor or legal counselor and what do you do next?!
The Edge Wrote: ------------------------------------------------------- > the get out clause is to go to your legal > counselor, supervisor. God help us if a question > comes up and states that you are the supervisor or > legal counselor and what do you do next?! give an sos call to cfai … make the damn standards clearer!