I have gone through the ethics standards several times, but I don’t understand the purpose of this reading (Ethics in Practice). To me it just looks like repetition of whats covered in the standards. Am I missing something here? The cases at the end of reading are worth reading but the reading itself… Is there anything meaningful out of this reading for the exam?
I would agree with you. Even the standards for asset managers look like a repackage of general codes and standards. Tried several times to memorize but finally give up.
it was a good revision of SS1 though…
The Asset Manager Code was specifically created for investment advisors (IA). They are subject to a mandatory code of ethics. So the CFAI created the AMC for IA Firms. The other code and standards are for INDIVIDUAL memebers and candidates. Although other firms (brokerage, etc) are encouraged to adopt a code of ethics they don’t have to do so (unlike IAs). I assume it closely mirrors the individual code and standards to try to pull more influence for the CFAI as the global standard.
i doubt your first remark is correct. CFAI has no jurisdiction whatsoever on asset managers. they cannot force a certain set of code on those guys.
when I was bored one night I lined up all the asset manager code sections with the corresponding sections in the CFAI Standards - almost exact coverage - but in a different order. Nothing much new added - just that the asset manager code applies to firms who adopt it - like mwvt9 said. see: http://www.analystforum.com/phorums/read.php?13,930424,934459#msg-934459
CFAI just requires us to waste more time in these reading ? The most important matter to candidates (and CFA charterholders) is abiding by the ethics ( & conscience ?). Many practioners knows the ethics very well but their behaviors just do know follow the ethics. Just got high grade in Ethics (& GIPS ?) on the exams does not mean the ethics (& GIPS ?) will be followed. I think carrots & sticks are much more important in real world. Do you guys agree ?
personally I have never met anyone or any firm who claims GIPS compliance. If they do claim compliance they don’t advertise it. I know CFA charterholders who don’t claim GIPS compliance for the funds they run. personally, I don’t know how any fund that claimed GIPS compliance would win any mandates - just my opinion. Most funds use outrageous claims re past performance (you can make numbers say pretty much anything you like) - and most directors/trustees of fund sponsors are completely out of their depth - well-meaning, but they have no idea. Even the “finance”-type directors/trustees are usually just CAs or CPAs who have very little idea about investment. That’s how councils, churces & charities (the “3 C’s” - “dumb money”) were sold so much sub-prime paper, CDS paper, Maddoff funds, etc, etc, etc without any idea of what they were buying. It wasn’t because the funds weren’t GIPS compliant - it was because they were duped. but meanwhile - gotta pass these exams…
CFAMonster Wrote: ------------------------------------------------------- > i doubt your first remark is correct. CFAI has no > jurisdiction whatsoever on asset managers. they > cannot force a certain set of code on those guys. I did not mean that the AMC was mandatory, but every IA MUST adopt a code of ethics. This requirement is imposed by regulators, not the CFAI. The CFAI proposed the AMC as an option for them. Kind of like a canned option so they don’t have to write one from scratch. And I am right.
AMC Wrote: ------------------------------------------------------- > CFAI just requires us to waste more time in these > reading ? The most important matter to candidates > (and CFA charterholders) is abiding by the ethics > ( & conscience ?). > > Many practioners knows the ethics very well but > their behaviors just do know follow the ethics. > Just got high grade in Ethics (& GIPS ?) on the > exams does not mean the ethics (& GIPS ?) will be > followed. > > I think carrots & sticks are much more important > in real world. Do you guys agree ? What does your name stands for AMC?? Sounds familiar - Asset Manager Code?? =) kidding… so are we paying much attention to this topic??? I just read it once and for some reason it is not sinking well in my mind that it is part of the curriculum!! Thanks,
anishcandy, Yes, "AMC"stands for “Asset Manager Code” which is redudant to CFA Level 3 exam.