There seems to be some contradiction in the ethics. The general advice, when you see your employer doing something wrong, or a colleague doing something wrong, or if you are given an assignment you know is wrong, is to first speak to supervisor/counsel, then try to disassociate, then possibly even have to leave the firm. What about whistelblowing? Is this only necessary when there is blatant illegality that can damage the entire integrity of the markets (i.e. cooking the books), rather than more “contained” unethical behavior, such as writing a research report with faulty numbers or copying information without citing it?
From my understanding, you are NOT required to report ANY illegal activities to the authorities under the C&S. You are, however, required to disassociate yourself from those same activities. The only exception would be if a stricter law (country, state, etc.) requires you to report illegal activities to the authorities.
So whistleblowing is never required? Just allowed if necessary?
I think that you would be required to report it to your supervisors, just now any other regulatory agency. That sound right? That’s the idea that I have gotten from numerous questions I’ve seen on the topic.
yea i think thats it jmuc. must tell supervisor–no need to tell regulatory agency. same applies to whistelblowing. tell your supervisor if you see any wrongdoin, but whistleblow if you really feel theres a need.
You must dissociate yourself from such violations, consult with supervisor/firms compliance, or outside counsel for an independent opinion. Whistleblowing is suggested but not required. CFAI does not want to turn you into a snitch.
Yeah… the last thing CFAI wants to do is associate their members with being narcs. Nobody’s going to want to hire a narc, and I would never rat on an employer. I might not want to work for them if I think doing the job’s going to land me in jail, but after I quit, whatever they want to do is no longer my business. In fact, there was an ethics question i ran into: So and so, CFA works for A and reviews statements for B. He notices B’s financial statements look like there’s some fraud going on, which of the following should he NOT do: A) Consult with A’s legal dept B) Consult with B’s legal dept C) Inform his supervisor D) File a complaint with the SEC So yes… if you notice something screwy at your firm, at most, talk to legal/compliance. It’s their job to take it outside of the firm, NOT yours.