quick ethics.

Member compliance on issues relating to corporate governance or to soft dollars is primarily addressed by the Standard concerning: A) Fair Dealing. B) Disclosure of Conflicts to Clients and Prospects. C) Loyalty, Prudence, and Care. D) Disclosure of Referral Fees.



B…or C?

I’d say B too If you are on a board, you need to disclose it and you of course have to disclose how you allocate soft dollars towards research.

Yeah, and Corp Gov basically has to due with minimizing conflicts of interests with managment and shareholders.

ok, then we are in agreement… though mumu, i’m not so sure. Your answer: B was incorrect. The correct answer was C) Loyalty, Prudence, and Care. Fiduciary duty on issues relating to corporate governance or to soft dollars is primarily addressed by Standard III(A), Loyalty, Prudence, and Care.

I hate ethics.


I was unsure about B - because its relating to disclosure of conflict to clients and prospects…not really shareholders…so it’s not directly corp gov related…since that leans more towards conflicts between a. manager and shareholders b. directors and shareholders

Just checking the LOS from Schweser online: Loyalty, Prudence, and Care: Members and Candidates have a duty of loyalty to their clients and must act with reasonable care and exercise prudent judgment. Members and Candidates must act for the benefit of their clients and place their clients’ interests before their employer’s or their own interests. In relationships with clients, Members and Candidates must determine applicable fiduciary duty and must comply with such duty to persons and interests to whom it is owed. I don’t get it.

C is the answer.

I guess I can see it. Using soft dollars for other than the client would be putting your interests in front of their and corp gov is about not doing things in mangements interests vs the stakeholders.

i would’ve said B here too. will just have to file the corp gov/soft dollars in loyalty, prudence, care in the ol’ memory bank. i need to read the ethics manual soon. took the AM schweser this morning (took a day off of work and woohoo stayed home studying) and i went 7/12 ethics. that is not exactly stellar. i can’t afford to lose points in ethics.

i bombed the ethics in that one as well… i’m a little disappointed in my ethics performance these days.

Was this from a book 6/7 exam or just Qbank?

i got this from the qbank. definitely not from any tests.