Ethics

pooja923
Good Student
Posts: 28
Joined: Fri Mar 11, 2016 11:38 am

Ethics

Postby pooja923 » Wed Feb 22, 2017 6:48 am

A member tells a client that he can get her a good deal on a car through his father in law but instead gets her a poor deal and accepts part of the commission on the car purchase.
Why is this a violation of misconduct when this is an act not related to business ?

edupristine
Finance Junkie
Posts: 745
Joined: Wed Apr 09, 2014 6:28 am

Re: Ethics

Postby edupristine » Thu Feb 23, 2017 5:49 am

Hi Pooja

According to Standard III(B)- Give all clients a fair opportunity to act on every recommendation. Clients who are unaware of a change in the recommendation for a security should be advised of the change before an order for the security is accepted.

and According to Standard VI(C)- Member of candidates must disclose to their clients any compensation, consideration, or benefit received from or paid to others for the recommendation of product or services.

In this case member didn't inform to client that there is any commission and he deducted without informing.


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