“Standard I(B) requires that an analyst maintain his independence and objectivity by having his firm pay for ordinary travel expenses to visit companies that are the subject of research.” (Page 87, explanation for ethics section concept checker 18, book 1 schweser). But a similar example on having another company pay for an analyst’s travel on book 1 page 21 says that “Even if his actions were not in violation of Standard I(B), Wayne should have been sensitive to the public perception of the trip when reported in the newspaper…” So guys, is it ABSOLUTELY forbidden to have the company you’re researching pay for your flight as the first above quote says, or if the accomodations are modest, is it not necessarily a violation, but still bad press?
Argh, I say we ban Schweser Ethics on this board. My .02. Standard says no lavish accommodations can be had if a company your researching pays for it. Standard accommodations are fine, but it is reco’ed that the analyst pay for it to avoid even the appearance of a conflict of influence. A company can vouch for your parking or pay for your train ticket into town as a courtesy, but it is ideal for the analyst or analyst’s firm to pay this all him/herself. A company cannot escort you into town via limo service, etc.
“So guys, is it ABSOLUTELY forbidden to have the company you’re researching pay for your flight as the first above quote says” But you are allowed to accept a private jet if there are no commercial airports within a reasonable area of the subject company, right? Pretty sure I remember that point being made before. As far as bad press violating the CFA standards, I haven’t the foggiest - maybe the “reflect poorly on yourself and the investment profession” one?
A candidate can take a side job that’s unrelated to his current job and not report it to his employer, right? Likewise, even if it’s unrelated to his job, the candidate cannot accept a job that interferes with his current duty to employer. Also, even if he’s volunteering for no money for a job that’s similar to his current one, (like he 's pension fund manager at a symphony, and he runs pensions in his dayjob), he must get WRITTEN permission from employer, right?
rellison Wrote: ------------------------------------------------------- > A candidate can take a side job that’s unrelated > to his current job and not report it to his > employer, right? Likewise, even if it’s unrelated > to his job, the candidate cannot accept a job that > interferes with his current duty to employer. > Also, even if he’s volunteering for no money for a > job that’s similar to his current one, (like he 's > pension fund manager at a symphony, and he runs > pensions in his dayjob), he must get WRITTEN > permission from employer, right? 99% sure that is all right.
Can we summary those circumstances where ethic issues are required to be reported to CFAI?
An analyst can accept flights/hotel etc. if there is no other alternative transportation method and not be in voliation. You can take a related job but if your employeers approve of it.