Would it be a violation of the code of ethics if a CFA charterholder who is a portfolio manager, decided to show clients a different time period of returns based on the current performance. So if for example the past 6 months was good for a clients account they would show performance for 6 months, but if the past 6 months was poor, but then the past month was good, they would show just one month performance instead? To me this is very unethical but I am wondering what others think.
Yes that’s a violation. It also a breach of fiduciary duty. It’s terribly unprofessional, and it puts you and your firm at risk.
How would you feel if you were the client…
We have a competitor that does this. I have never seen a CFA Charterholder at that firm.
We have pointed out their moving timeframes to clients. They are always annoyed,
Is this criminal since it’s a breach of fiduciary duty?
It’s a breach of fiduciary duty . . . where, exactly?
Gwoods posted that above.
So long as you provide standard performance period returns (YTD, 1, 3, 5, 10 year) along with a “carved out” period, you’re fine. But you still have to show the complete picture. Not exactly sure how this fits into the CFA CoE, but it’s an SEC/FINRA thing for sure.
Edit: Because you’d be in violation with SEC/FINRA rules, you’d be in violation of the CoE as well.
Violation. because that is cherry-picking and attempt to mislead
violation- Standard III-D: Performance Presentation, selective accounts/selective time frames
baller alert, are you managing Ohai’s money by any chance?
Financial Planner BBA (Finance & International Business) 1998, MBA (With a Global Perspective) 2011, ChFC® 2018, CLU® 2019 Owns an Independent RIA/Insurance Agency Series 65, Life, Annuities, Health (Expired 6,63)