Recommended Procedures for Compliance

Recommended Procedures for Compliance Members or candidates should disclose special compensation arrangements with the employer that might conflict with client interests, such as bonuses based on short- term performance criteria, commissions, incentive fees, performance fees, and referral fees. If the member’s or candidate’s firm does not permit such disclosure, the member or candidate should document…

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Understanding the Application of Loyalty, Prudence, and Care

Understanding the Application of Loyalty, Prudence, and Care Standard III(A) establishes a minimum benchmark for the duties of loyalty, prudence, and care that are required of all members and candidates regardless of whether a legal fiduciary duty applies. Although fiduciary duty often encompasses the principles of loyalty, prudence, and care, Standard III(A) does not render…

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Recommended Procedures for Compliance

Recommended Procedures for Compliance Achieve Public Dissemination If a member or candidate determines that information is material, the member or candidate should make reasonable efforts to achieve public dissemination of the information. These efforts usually entail encouraging the issuing company to make the information public. If public dissemination is not possible, the member or candidate…

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Consumer Equilibrium

A consumer is in equilibrium position when he/she achieves maximum satisfaction out of the available resources. A consumer in an equilibrium position when he/she distributes expenditure on purchase of different goods in such a way that marginal utility of a different good is equal to that of the good. This behaviour of customers is called…

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THEORY OF CONSUMER

It touches on satisfaction other than a customer desire from consuming a particular commodity’s. The satisfaction the consumers derives from consumption of commodity is called utility. Average utility is the satisfactory per unit consumed on average. Marginal utility is the incremental satisfaction brought about by consuming an extra unit of a commodity. All this is…

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Recommended Procedures for Compliance

Recommended Procedures for Compliance Factual Presentations Members and candidates can prevent unintentional misrepresentations of their qualifications or the services they or their firms provide if each member and candidate understands the limit of the firm’s or individual’s capabilities and the need to be accurate and complete in presentations. Firms can provide guidance for employees who…

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