Ethics

jaskaur992
Posts: 2
Joined: Mon Apr 04, 2016 6:25 am

Ethics

Postby jaskaur992 » Tue Apr 26, 2016 5:02 pm

As according to Standard VI (A), members and candidates must disclose all the matters to their employers/clients that can reasonably impair their Independence and objectivity, or interfere with their duties to their clients/employers.

So for example if they receive any additional compensation for referring a particular company's stocks to their clients, they must disclose this arrangement to the clients every time they make such recommendation to them.

In continuation with the above example, doesn't this standard go against Standard I(B), independence and objectivity, as per which, the member must not offer or accept any gift or compensation in the first place, that can impact his/her objectivity and independence??


Disclosure comes once you have accepted something.
It is only after accepting that we are required to disclose.

So doesn't Standard I(B) get violated in order to comply with Standard VI(A)?

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Re: Ethics

Postby edupristine » Sat Apr 30, 2016 7:32 am

Hi Jaskaur
conflicts between standard I(B)and IV(A)-
Standard I(B) addresses the intergrity of the investment process and revisits the dangers inherent in a conflict of interest and these investment processes are not influence to other outsider however standard IV(A) is the standard of professional conduct is devoted to the responsibilities we owe to our employer.

jaskaur992
Posts: 2
Joined: Mon Apr 04, 2016 6:25 am

Re: Ethics

Postby jaskaur992 » Sat Apr 30, 2016 6:32 pm

Hi, I am sorry but I was referring to the difference between Section I(B) - Independence and Objectivity, and Section VI(A) - Disclosure of Conflicts (of interest)

You are referring to Section IV(A) - Loyalty (to employers)

Am I missing some link please advise?

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Re: Ethics

Postby edupristine » Mon May 23, 2016 6:01 am

Hi Jaskaur

the primary intent of Standard VI (A) is to protect the employer.disclosing conflicts of interest protects clients and the public.


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