ethics - drugs, drunk driving, bankruptcy

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TheBJWay

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Are any of the above items considered violations of the code and standards? I see them all the time, but am never certain.
thanks
 
I think drugs is, drunk driving is (but being drunk and getting a citation isnt), and bankruptcy definitely is not if its for legit reasons (like your wife got ill and you couldnt pay the bills.)
any corroboration on this?
 
Example 1 - A PM is drunk and tooting blow during lunch. He goes back to work and makes investment decisions under the influence. Violation
Example 2 - A PM is out on the town, driving drunk, and crashes his car into a 7/11 with a 18 year old stripper in the passenger seat. No Violation
Example 3 - A PM gets in a nasty divorce with his wife due to the stripper incident and has to declare bankruptcy. No Violation
Example 4 - During the divorce, the PM get’s the wise idea to put alot of his assets in the strippers name to conceal them from the court. Violation
Basically if clients or the employer is not involve with a drunk/drugs/driving incident, no violation. If clients are present or it’s during work hours, violation.
Serious felonies are the exception. But the CFA Charter/Candidacy would be the least of your worries if you’re potentially facing death row.
 
I think previous drug possession charges or drunk driving is not in violation of the code, as long as this things happened out and away from the workplace. Also I believe bankruptcy is a personal matter and not in violation either.
 
Actually serious crimes CAN get you barred from using the CFA Designation
There was a question in qbank that went like:
a CFA murders someone, he can be barred from using the CFA Designation if:
a) he is convicted of the crime
b) he pleas guilty
c) is acquitted but barred from working in the securities industry
d) all of the above
answer is all of the above
 
f2d Wrote:
——————————————————-
> Actually serious crimes CAN get you barred from
> using the CFA Designation
>
> There was a question in qbank that went like:
>
> a CFA murders someone, he can be barred from using
> the CFA Designation if:
> a) he is convicted of the crime
> b) he pleas guilty
> c) is acquitted but barred from working in the
> securities industry
> d) all of the above
>
> answer is all of the above
Or how about because he used CFA as a noun?
 
Well, murder is a bit different than drunk driving or drug use, but I think I have the idea. Essentially, if you do it during work hours or with clients then its a violations (thanks ditch).
What about if you are driving drunk, slam into a 7/11 with a stripper in the passenger seat who is doing blow and happen to hit a client? Is that a violation since the client happened to be in the wrong place at the wrong time?
 
ditchdigger2CFA Wrote:
——————————————————-
> Or how about because he used CFA as a noun?
ah ha, I’ll have to do a bit more reading on the ethics section before the exam ;)
 
>
> What about if you are driving drunk, slam into a
> 7/11 with a stripper in the passenger seat who is
> doing blow and happen to hit a client? Is that a
> violation since the client happened to be in the
> wrong place at the wrong time?
You do raise a good point. Like what if you do that, and the Police Officer that arrives is a client? Then is it a violation?
 
Either way, I think the client would fire you (cop or victim…or hooker, for that matter, which would be a violation if she is a client).
Okay, enough distraction…back to studying
 
I think this one is from a mock CFAI exam:
Crandall Temasek, CFA, filed for personal bankruptcy two years ago after incurring large medical expenses. He was hired recently as a portfolio manager. According to the CFA Institute Standards, must Temasek disclose his bankruptcy filing to his new employer?
A) No
B) Yes, because he has a duty of loyalty to his employer.
C) Yes, because bankruptcy represents a potential conflict of interest.
D) Yes, because bankruptcy reflects poorly on his conduct and character.
The answer explanation that came with it:
C, Standard VI(A) Disclosure of Conflicts. The bankruptcy may impair Temasek’s independence or conflict with the employer’s interests.
lol
 
yosh Wrote:
——————————————————-
> I think this one is from a mock CFAI exam:
>
> Crandall Temasek, CFA, filed for personal
> bankruptcy two years ago after incurring large
> medical expenses. He was hired recently as a
> portfolio manager. According to the CFA Institute
> Standards, must Temasek disclose his bankruptcy
> filing to his new employer?
>
> A) No
> B) Yes, because he has a duty of loyalty to his
> employer.
> C) Yes, because bankruptcy represents a potential
> conflict of interest.
> D) Yes, because bankruptcy reflects poorly on his
> conduct and character.
>
> The answer explanation that came with it:
>
> C, Standard VI(A) Disclosure of Conflicts. The
> bankruptcy may impair Temasek’s independence or
> conflict with the employer’s interests.
>
> lol
This was on the official mock exam??
How is that a conflict of interest?
 
Yup, I remembered answering D on that one lol. I think that’s more credible than answer C.
Maybe it’s a conflict of interest if his employer invests in distressed debt…
 
ditchdigger2CFA Wrote:
——————————————————-
> Example 1 - A PM is drunk and tooting blow during
> lunch. He goes back to work and makes investment
> decisions under the influence. Violation
>
> Example 2 - A PM is out on the town, driving
> drunk, and crashes his car into a 7/11 with a 18
> year old stripper in the passenger seat. No
> Violation
>
> Example 3 - A PM gets in a nasty divorce with his
> wife due to the stripper incident and has to
> declare bankruptcy. No Violation
>
> Example 4 - During the divorce, the PM get’s the
> wise idea to put alot of his assets in the
> strippers name to conceal them from the court.
> Violation
>
> Basically if clients or the employer is not
> involve with a drunk/drugs/driving incident, no
> violation. If clients are present or it’s during
> work hours, violation.
>
> Serious felonies are the exception. But the CFA
> Charter/Candidacy would be the least of your
> worries if you’re potentially facing death row.
So ditch, and this PM is who then? Just sombody you know hey?? ;-)
 
Crandall Temasek, CFA, filed for personal bankruptcy two years ago after incurring large medical expenses. He was hired recently as a portfolio manager. According to the CFA Institute Standards, must Temasek disclose his bankruptcy filing to his new employer?
A) No
B) Yes, because he has a duty of loyalty to his employer.
C) Yes, because bankruptcy represents a potential conflict of interest.
D) Yes, because bankruptcy reflects poorly on his conduct and character.
The answer explanation that came with it:
C, Standard VI(A) Disclosure of Conflicts. The bankruptcy may impair Temasek’s independence or conflict with the employer’s interests.
(This is B*llSh!+)
Members who are involved in a personal bankruptcy filing are not automatically assumed to be in violation of the standards because bankruptcy may not reflect poorly on the
integrity or trustworthiness of the person involved.
 
Is that question from the official CFAI mock exam?
If so.. wtf?
I could understand if it was someone at schweser or stella that screwed that up.. but come on, a personal bankruptcy being a conflict of interest is such BS
 
I just re-re-re-read the standard. That is a HUGE leap of faith. (Maybe the logic is: My bankruptcy is a mental distraction which would prevent me from performing my full duties…..)
 
so would you have to report the fact you’re going thru a divorce too? That’s also a huge distraction.
You’d have practically report everything in your life then.
 
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