Topic 14 GARP Code of Conduct.pdf

When an analyst makes an investment recommendation

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When an analyst makes an investment recommendation, which of the following statements must be disclosed to clients? The analyst's father-in-law has a material ownership in the security. All of these statements must be disclosed to clients. An employee of the firm holds a directorship with the recommended company. The firm is a market maker in the stock of the recommended company. Which of the following statements is incorrect regarding GARP Code of Conduct violations? Violations of the Code of Conduct may result in permanent removal from GARP membership. If the Code of Conduct and certain laws conflict, then the GARP Code of Conduct will take priority. Violations of the Code of Conduct could lead to a revocation of the right to use the FRM designation. Violations of the Code of Conduct may result in temporary suspension from GARP membership. Will Lambert, FRM, is a financial risk analyst for Offshore Investments. He is preparing a purchase recommendation on Burch Corporation. According to the GARP Code of Conduct, which of the following statements about disclosure of conflicts is most correct? Lambert would have to disclose that:
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  • Fall '18
  • analyst, GARP, Charmaine Townsend, Burch Corporation

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