StandardIGuidance?Guidance-InvestmentProductsApplicableLaws15.dmakeeeffortsassociatedfirmsthatgservicesalsoabideythelawsandregulations.16.Shouldundertaenecessarydiligencewhentransacting紅塵主bordertounderstandthetipleapplicablelawsandregulations,orderthereputationoftheandthemselves.17.kappropguidancethescompliancelegaldepartmentsandlegalloutsidetheorganizwhenuncertainaboutwhichlawsregulationsingbusinessinejurisdictions.20392蕓業(yè)．創(chuàng)新．增值StandardGuidance?Guidance-companies1Analystsshouldnottoissuefavorablebycompaniestheyfollow.Cantocoverthefirmshouldnotpromisefavorablereportaboutthefirm.1diligencenfinancialresearchandanalysisinvolvesgatheringinformationfrompublicdisclosuredocumentscompanymanaandinvestor-relatipersonnel,suppliers,customers,competitors,andrelevantsources.39-392蕓業(yè)．創(chuàng)新．增值StandardGuidance?Guidance-Creditratingagencyopinions12229.Membersandcandidatesratingagenciesshouldensurethatprocedurestheagencpreventundueinfluencesfromasponsorgcompanyduringtheanalysis.0.Shouldabidebtheiraencies'andthestandardsfregardingtheltheutonfreports.1.Theratingagencneeddevelopthenecessaryfirewallsrotectitoalloweoerationsofrdifferentbusiness2.informationprovidedby,delfepotentialconflictsfinterest.40392蕓業(yè)．創(chuàng)新．增值Standardl(C):1-2??Case1.(DisclosureIssuer-PaidResearch)McGuireisanssuerdanalystbylistedcompaniesoeocksonline.ehyrecommendasofthiscontractualrelationshidnIindependentanalyst.?:McGuireStandardI(C)-misrepnandStandardVI(A)ashefailedtodisclosehisarrangementwiththelistedcompaniesandmisledorsonline.Case2.(CorrectionUnintentionalErro?)isresponsiblethemarketingmaterialdcatchesatypographicalthatinflatestheeassets.?:eI(C)nbecausehedtknydistributetheproblematicmaterials.Yaoenecessarycorrecnnhethe.80392蕓業(yè)．創(chuàng)新．增值Standardll(A):RecommendedProcedures?RecommendedProcedures20.ntenance.?Multi-servicefirmsdmaintainwttfthecommunicationsbetweenpartments.sdplaceaontrainingandinstitutingeramsarticularlloeessensitive.21.P?o??i?ta?yt?a?ing??tproprietaryggitionallproprietaryowningisnotappropriate.7dependthetypesofproprietarytrading.++MarketmakerpossessionofMNI,wiawalfrommarketgleacleartipomarket.Remainpassiveomarket(takeonlycontrasidefunsolicitedcustomer'strades).Risk-arbitragetrading:tostop;tstop,provetheyofintal,andmustdemonstratestringentreviewanddocumentationof.120392蕓業(yè)．創(chuàng)新．增值Standardlll(A):Case2?Case2(ClientCommissionPractices).asuccessfulgfirmrlocalpension,eponofbrokeragetoThompson,becauseofcloserelationsisbetweentheexecutiofeo?-Thompson'snstructurehidesfeehservicesandexecutionnherJNIgbrokerageoThompson,Thompsonabsorbsaportionfoverheadexpensesof丿NI.?Comment:JNIdnotobtainbestnfordydclients'geoviolation.160392蕓業(yè)．創(chuàng)新．增值Standardlll(C):1-2?Case1(InvestmentSuitability-RiskProfile).Smithrecommendsinvesting20%ofboth2clients'ortfolioszerodividenddsmall-ca臣.Onehavingaeisgtopartlyaggressivelywhiletheotheronlwantstoasteadreturnhlowvolatility.?Comment:etwoclientshavedifferentfinancialumstancesandSmitsrecommendationisnotsuitablesteadyIt'saviolation.?Case2(InvestmentSuitability-EntirePortfolio).Walterssuggestshisclienttousecoveredcalloptionsineequityportfoliotoimprovetheperformaneaportfolioperspective.eeducateshisclientaboutossibleincludintaxconsideratione.?decharacteristicsesportfoliodexplainedeinvestmente.sa2392蕓業(yè)．創(chuàng)新．增值StandardCase5-6??5(OwnershipofCompletedPriorWork).spendshersummerasunpaidinternM&LhelpingGIPScomplianceTwomonthslater,getsabMMC,alsoaGIPScompliant.leaving,copiesfirm'ssoftwaretshehelpeddevelop.?Comment:InternshpsemploymentandMadelineolatedStandardIV(A)-loyaltybecausemisappropriatedM&L'spropertywithoutpermission.6(StartingaNewFirm).Allen,equityanayst,withoutnoticeemployer,registersstartinvestmentcompanywicompeteheremployer.However,sheactivelysoughtlients.?snotaviolationasIonAllenherbusinessonherownoutsideofficeandifAllenwillnotesolicitingclientsthebusinessotherwiseoperatingnewyuntilhaslefthercurrentemployer.240392蕓業(yè)．創(chuàng)新．增值GuidanceforI-VIIthelaw;IndependenceMisrepresentation;ProfessionalismMaterialn叩informatmanipulationIntegrityofCapitalMarketsLoyalty,care;FairdealiDutyToClientsSuitability;Performancepresentation;PreservationfconfintiaitStandardsLoyalty;rsionalcompensationarrangements;Responsibsupervisorsandreasonablebasis;CommunicationwithInvestmentDisclosurePriorson;ReferralfeesInterestasmembersandcandidates;fintute,designationResponsibilityasMembers280392蕓業(yè)．創(chuàng)新．增值StandardV(B):Case10?lO(NotificationofChangestheInvestmentProcess):MichaelPapisisthechiefinvestmentofficerofhisstate'sretirementfundwhichusesoutsideadvisersfortherealestate.HedecideschangeoutsideadvisertohisschoolclassmateNaglewhorunsanassetmanagementcompanydsearchingforretirementfund'sallocation.dnoticefchangeennextannual?PapishasviolateddclientsbecausePapisattemptedtohidethenatureofhisdecisiontolonlyalimited.320392蕓業(yè)．創(chuàng)新．增值StandardVl(C):2?Case2(disclosureinterdepartmentalreferralarrangements):Handleyworksthetrustdept.atreceicompensationeachreferralemakesbrokeraetandtheersonalmanaementt.CTB.Herefersseveralclientstopersonalmanagementdept.anddoesnotdisclosethereferralarrangement.?Comment:HandleyhasviolatedVI(C)-referralfeesfailingthereferralarrangementwite.VI(C)-referralnothfeesreceivedatywithinfirm.392蕓業(yè)．創(chuàng)新．增值CurrencyExchangeRates日Warm-叩：appreciationdepreciation?Example:thedollar-Swissfrancrateincreasefrom:=1.7799o1.8100.eSwisshasrelativetothedollar-itnowsmoreSwissfrancstobuyadollar.?nincreasenthenumericalvalueofeexchangeratemeanstthebasecurrencyhasapprciatedandthatthepricecurrencydepreciated.1.7799CHF/USDto1.8100CHF/USD??USOthereforeFdepreciated8-蕓業(yè)．創(chuàng)新．增值InternationalParityRelationshipsInternationalParityRelationshipsFIRP-l+rs。yForeignexchangeexpectationsrelationFisher曰言E)1。yS48-蕓業(yè)．創(chuàng)新．增值MonetaryApproach?Mainapproaches?Puremonetaryl?emonetaraassertsXrisethedomesticmonelwillroduceXercentrisethedomesticricelevel.Assumingthatpurchasingpowerparityholds,cha