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Canada (509,749)
MIS 4500 (31)

Asset Manager Code of Professional Conduct.docx

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Management Info. Systems
MIS 4500
Pourang Irani

Reading 6: Asset Manager Code of Professional Conduct: Intended to be adopted at firm level General Principals of Conduct: 1. Act in a prof’l and ethical manner at all times 2. Act for benefit of clients 3. Act w/ independence and objectivity 4. Act w/ skill, competence, and diligence 5. Communicate w/ clients in a timely and accurate manner 6. Uphold rules governing capital markets Asset Manager Code of Professional Conduct (6 parts): A. Loyalty to Clients 1. Place client interests before their own 2. Preserve confidentiality of info communicated by clients w/I the scope of the Manager-client relationship 3. Refuse to participate in any business relationship or accept any gift that could reasonably be expected to affect their independence, objectivity, or loyalty to clients B. Investment Process and Actions 1. Use reasonable care and prudent judgment when managing client assets 2. Not engage in practices designed to distort prices or artificially inflate trading volume w/ the intent to mislead market participants 3. Deal fairly and objectively w/ all clients when providing investment info, making investment recommendations, or taking investment action 4. Have a reasonable and adequate basis for investment decisions 5. When managing a portfolio or pooled fund according to a specific mandate, strategy, or style: a) Only take investment actions that are consistent w/ the stated objectives and constraints of that portfolio or fund b) Provide adequate disclosures and info so investors can consider whether any proposed changes in the investment style or strategy meet their investment needs 6. When managing separate accounts and before providing investment advice or taking investment action on behalf of client: a) Evaluate and understand the client’s investment objectives, tolerance for risk, time horizon, liquidity needs, any other unique circumstances (including tax considerations, legal or regulatory constraints, etc.), and any other relevant info that would affect investment policy. b) Determine that an investment is suitable to a client’s financial situation C. Trading 1. Not act, or cause others to act, on material nonpublic info that could affect the value of a publicly traded investment 2. Give priority to investments made on behalf of the client over those that benefit their own interests 3. Use commissions generated from client trades only to pay for investment-related products or services that directly assist the Manager in its investment decision-making process and not in the management of the firm 4. M
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