Standard I © . Example 16.
This firm claims they are “achieving excellent returns for their investors” while the case categorically mentions one particular fund outperformed and 7/10 below median.
I wonder then why would this not count as Misrepresentation?!!!
Also, EoC. Q21.
I had read somewhere in disclosure of conflicts, that you do need to disclose your spouse’s ownership in a co. that you’re about to cover.
In a way one would think this could extend to other family members. But this example finds analyst’s brother in law “tangential” (to be influenced by report)
(We have a really infamous BIL in my part of the world)
I believe this is because you directly benefit from it. You and your spouse are considered as 1 in terms of wealth. If your wife benefits from the stock appreciation due to your favourable research report then you ultimately benefit too because whats hers is yours and whats yours is hers.Your wealth together increases. With the brother in law if he benefits you don’t benefit. You don’t see your joint account increase from the stock appreciation because you don’t have a joint account with someone who isn’t your spouse.
Thanks. Hopefully this should work.