Академический Документы
Профессиональный Документы
Культура Документы
1. Disclosure of conflicts
- full and fair disclosure
- (1)EEs, (2) Clients (3)Cross-dept (4)Stock ownership (5) Director
generally advised not to buy stocks if you are EE of coy since its
about perception, public perception is that you will want to now
issue fav reports for the coy to increase price of stocks.
2. Priority of transactions
- Personal trading is secondary to client
- Impact on all accounts with beneficial ownership
- Family client acct should neither be disadv / given preferential
treatement
3. Referral Fees
- Disclosure compensation/benefit to ER and clients (Both vs only
ER for additional compensation)
- Advise client of any referral fees received
- disclosure allows clients to assess partiality in service and
determine full cost of service
Responsibility as CFA institute member/candidate
- Candidate is either someone who is sitting for the exam/ waiting
for results
- Member:
- CFA must be used as an adjective and cannot be applied to say
holding CFA is superior to someone without. You can only say you
have completed it.
GIPS
Everytime you show return of portfolio, cannot always show
transparently.
To address misleading practices (1)Representative accts
(2)Survivorship bias (3)Varying time periods
Compliance by: investment management firm (actually mged
assets)
Effective date: jan 1, 2011.
Firms must include terminated composities on the firms list of
composite descriptions not performance for at least 5 years after
composite termination.
Composiites: what is part of composite aggregation of 1/more
portfolios managed according to similar investment mandate,
objective or strategy, all actual fee-paying and discretionary
portfolios ( manager has discretion to intervene), and what is part of
total assets both fee and non fee paying and both discretionary
and non discretionary?
9 sections:
Fundamentals of compliance: a gips compliant firm has to be fully
compliant, no partial compliant, firm wide basis. No need to be
verified by 3rd party but recommended to do so ( how you obtain
composite and how you cal returns). Total assets: all discretionary
and non-discretionary assets both fee and non fee paying
Input data
Calculation methodology
Composite construction: all actual, fee paying discretionary
portfolios, only actual assets managed by firms, terminated porfolios
must be included
Disclosure
Presentation and reporting
Real estate
Private equity
Wrap fees/separately managed accts portfolios