AuthorTopic: Ethics doubt
@2019-03-01 19:32:50
If an analyst changes recommendation on a stock or discovers a new growth stock and only informs the clients who hold the stock or for whom the stock is suitable, is he/she in violation of fair dealing?

Is a member required to disclose modest gifts like a pen or a shirt from clients?

Is a member required to do due diligence on firm approved third party research?

If the employer allows it, can a member take part in a IPO issue provided it is not over subscribed? Correct me if I am wrong, members cannot participate in an oversubscribed IPO even if the employer allows it.

@2019-03-02 21:44:31
Members are required to follow their firm's disclosure policy. If your firm require full disclosure, you have a disclose Pen and Shirt gift even though they are modest.

Yes, additional due diligence may be required on the third party research provider even though the firm approved of them.

An employee can take part in an IPO if not oversubscribed, and if oversubscribed, an employee cannot take part in it.

On changes in recommendation, am not too sure, but i think he will have to make the new findings public to investors and potential investors.

CFA Discussion Topic: Ethics doubt

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