Robe Advisory Services operates an office in SF, where it manages portfolios for its clients based in the US. The firm also maintains an office in Tokyo, where it employs Sam Lee, CFA, who researches Japanese stocks. Lee is required to maintain knowledge of an comply with all applicable laws, rules and regulations in : A. US and Japan, but not AIMR Standards of professional Conduct B. Both the US and Japan and the AIMR standards of professional conduct. THe answer is A. But I think it should be B, how can AIMR does not matter?? Jason Balckwell, CFA, works as an investment manager for Mega Capital, a large multinational brokerage firm. While Blackwell is still employed at Mega, Lego Associate verbally asks Blackwell to review client fortfolios, during evening and weekends for a fee. Balckwell gets written consent from his immediate supervisor at Mega to undertake this independent activity for a one-month trial basis. Did Blackwell violate Duty to Employern Stardard III (B)? A. No B. Yes, because he should get consent from Lego associate as well. The answer is B. But i think it should be A, coz he only need written consent from his employer.
1st question - don’t AIMR = GIPS… which aren’t required to be followed? 2nd questions - wouldn’t he now also require written consent from Lego Associates? **EDIT - is this an old question? I don’t think AIMR exists any more and don’t think this would be exam-testable material.
mkgref Wrote: ------------------------------------------------------- > 1st question - don’t AIMR = GIPS… which aren’t > required to be followed? Nothing to do with it. AIMR = Association for Investment Management and Research that’s how CFAI was called years ago. Which tells you right there that the questions you’re looking at, are really old. Move on.
For the first question, Sam Lee holds the CFA designation, hence he is not supposed to have reviewed and agreed to abide by the AIMR (the former CFA institute). He is expected to have agreed to the CFAI code of ethics and standards of professional conduct. In other words, AIMR doesn;t exist anymore—If the answer had said CFAI Standards of professional conduct, then it would make sense to chose that answer. Personnally, I find this question ridiculous. They
re kinda reminding you that CFAI used to be AIMR.... As for the second question, Standard IV-B (Additional compensation arrangements) states that consent has to be obtained from the employer and ``all parties involved`` I suppose, in our case, all parties involved includes Lego Company. What doesnt make much sense to me is, how can u ask approval and consent from an entity that is actually requesting the service!! I guess , to be conservative and to cover your ass basically, you have to document (hence
written consent) that the entity requests and agrees that you render the service and that your employer approves it and gives you the needed consent. I hope this helps, If anyone has another suggestion, please feel free, I appreciate it… Good luck everyone, keep the focus, 15 days to go!!