Asset Manager code

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krishna1

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I will gaurantee you all(I know ethics does not allow but am not talking about investments here) that there will an ethics question on Asset Manager code. I think it would help everyone if we could cover some of the very basics:
For my part
(1) it is voluntary code
(2) it applies to firms
 
AMC can be adopted firm-wide whereas teh Ethic Standards can only be adopted per individuals, right?
 
Hmm… thought a firm could adopt the code of ethics firm-wide including GIPS which is also firm wide (definition of the firm important).
 
PJStyles Wrote:
——————————————————-
> Hmm… thought a firm could adopt the code of
> ethics firm-wide including GIPS which is also firm
> wide (definition of the firm important).
NOOOOOO Ethics is for inidivduals ONLY
 
Its weird. You can Adopt the Ethics as your Ethics, but it only applies to Individuals not the Firm. ACM Applies to the Firm.
 
Cool… good to know… glad we covered this… what else do we need to know regarding AMC?
 
1) You must designate compliance officer
2) Compliance officer must report to CEO
3) You must have COB plan
dont remember the rest, need to look it up
 
Firms are not required to follow Asset Manager Code in its entirety, and use of portions most relevant to the firm is recommended.
CFAI Code of Ehtics recommends records for at least 7 years in the absence of regulatory guidance whereas Asset Manager Code requires managers to keep records for at least 6 years unless otherwise reuired by local law or regulation.
 
6 year record retention?
soft dollar commissions must only benefit client and not for general management?
 
volkovv Wrote:
——————————————————-
> Firms are not required to follow Asset Manager
> Code in its entirety, and use of portions most
> relevant to the firm is recommended.
>
> CFAI Code of Ehtics recommends records for at
> least 7 years in the absence of regulatory
> guidance whereas Asset Manager Code requires
> managers to keep records for at least 6 years
> unless otherwise reuired by local law or
> regulation.
waaait ethics ‘RECOMMENDS’ retention for 7 years? i thought it is required
 
there was some useful info in the answer sheet from BSAS. I will read it again and post those this evening.
 
I have the Etics book with me today, so I can quote
“…In the absence of regulatory guidance, CFA Institute reccomends maintaining record for at least seven years.”
CFAI Volume 1, Reading 2, p.88
 
volkovv Wrote:
——————————————————-
> I have the Etics book with me today, so I can
> quote
>
> “…In the absence of regulatory guidance, CFA
> Institute reccomends maintaining record for at
> least seven years.”
>
> CFAI Volume 1, Reading 2, p.88
so it is recommended and not required, if there is a law that says 1 year we can keep em for 1 year, but for AMC, if law says 1 year we still have to keep for 6 years…?
 
3rd & Long Wrote:
——————————————————-
> 6 year record retention?
> soft dollar commissions must only benefit client
> and not for general management?
yes, for Asset Manager Code, record retention requirement is at least 6 years
 
comp_sci_kid Wrote:
——————————————————-
> volkovv Wrote:
> ————————————————–
> —–
> > I have the Etics book with me today, so I can
> > quote
> >
> > “…In the absence of regulatory guidance, CFA
> > Institute reccomends maintaining record for at
> > least seven years.”
> >
> > CFAI Volume 1, Reading 2, p.88
>
>
> so it is recommended and not required, if there is
> a law that says 1 year we can keep em for 1 year,
> but for AMC, if law says 1 year we still have to
> keep for 6 years…?
it is hard to believe that the law will make you to keep it for 1 year and prohibit you to keep it for longer
if the law says you have to keep it for 1 year, you surelly keep it for 1 year, and then keep it for 6 more years to comply wit CFAI reccomendation in terms of following industry best practice
in pure hypothetical case, if there is a law that says keep record for one year and then burn them, then yeah you would follow the law and forget CFAI recommendations
same can be said about Asset Manager Code, since they say 6 years, “…unless otherwise reuired by local law or regulation”, so if there is again such a law that requires you to burn records after 1 year, you would follow that law
but I think this is going way on tangent here, and in real world it will never happen
I think the point to remember from here than in Ethics code it 7 years and in Asset Manager code its 6 years
 
So far we have:
1) Voluntary Code
2) Adopted on a firm-wide basis
3) Must designate a compliance officer
4) Compliance officer must report to the CEO
5) You must have a COB plan
6) Maintain Records for 6 years
7) May adopt sections of the AMC that apply to the firm
Any others we can add to the list?
 
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