last minute advice on Ethics

[Snah]

@Jsnazz

I think everyone got that question wrong…BUT The question is a trick. Re-read it, it says in regards to her meeting of Potential."During X meeting with X potential clients, what was the violation.

The meeting with the CFO was with an exsisting client, they aren’t asking about that. They are asking about the potential client meeting.

Yes but the conversation between the CFO and the analyst shouldnt be disclosed to 3rd parties should it?

Specially with people outside the orgaziation

[Jsnazz]

I think it was a violation to talk with the CFO and the Exisiting client. BUT, all they tell us is that the she talks about the stock research process with the potential clients. Even the conversation with the CFO is iffy. What if they just said" Yeah, I think our firm has some really awesome growth coming up, we are excited by our new products mentioned in our last meeting".

That being said, if there was a question like this (this tricky), I pretty sure only the people who guessed who get it right haha.

[joe35y]

I find that the CFA likes to throw in one tricky question per vintage. I’m just going into it answering with my gutt on most of them from what I know from the Standards. If i get that trick question wrong so be it, I know I’ll get 4 or 5 out of the six right by not over thinking it.

A passing grade on this hellish exam is good enough for me!

[aggybail]

Thanks, all!! Super helpful to read your responses (and know I’m not alone in understandinf this topic).

blackscholesvol, I’m adding a few more items to your list and a few caveats to the general rules, maybe it will be helpful to you:

1. Deciding not to allocate shares to a family member who is a client of your firm. VIOLATION.

2. Receiving additional compensation and not disclosing it to your firm. VIOLATION (It’s ok to accept additional compensation as long as it is disclosed to the employer and you get permission from your employer)

3. Overhearing the CFO discuss an upcoming earnings report that isn’t public and taking a position in your account. VIOLATION

4. Selling shares to raise cash for emergency. NOT VIOLATION

5. Indicating that having a CFA, you are superior to others. VIOLATION. (It’s ok to say something like “by taking the CFA exam I improved on my quantitative analysis and portfolio management skills.”)

6. Going on TV and recommending a stock but not disclosing compensation arrangements or conflicts. VIOLATION

7. Recommending a client overweight stocks when he/she is two years from retirement and needs income. VIOLATION

8. Combining non-material public information to draw a conclusion. NOT VIOLATION

9. Storing records for six months only. VIOLATION (should be 12 months)

10. Collecting client information from your current firm when trying to start a new company. VIOLATION

11. Collecting client information from public sources. NOT VIOLATION

12. Accepting small gifts (pens etc) from a client: NO VIOLATION. Avoid accepting anything that could give the appearance of compromising your objectivity

13. Emailing some clients and sending out letters to others. NO VIOLATION (its ok as long as you treat all clients fairly)