6) CPC - Part 2 Flashcards
how to identify conflicts of interest?
identify cause of the conflict and remain alert to changes over time
how to evaluate conflicts of interest?
more direct the connection between matter and interest = less acceptable level
how to address conflicts of interest?
- withdraw from decision-making process
- safeguards = restructure resp, oversight
- disclose and obtain consent from affected parties in writing
what are the requirements for pres/prep of information?
- in accordance with reporting framework
- not intended to mislead / influence
- accurate and complete
what must the PA do when relying on the work of others?
have steps in place to ensure they meet the requirements for presentation/prep of information
what must the PA do when addressing info that is misleading?
- discuss with a superior
- correct the info
- disclose the correction
- inform users of new info
who may the PA consult with if the info continues to be misleading?
- legal counsel
- professional body
what are the requirements for acting with sufficient expertise?
- not intentionally mislead level of expertise
- only undertake significant tasks if you have sufficient training / experience
what can impact sufficient expertise?
insufficient time, info, experience
what safeguards are there for acting with sufficient expertise?
- obtain assistance / training
- ensure adequate time to perform
what are the requirements for financial interests / compensation?
- not manipulate info / use confidential info for personal gain
- evaluate through significance
what is an inducement?
something used to influence another’s actions/behavior, not necessarily to improperly influence
what are the laws and regulations surrounding inducements?
- prohibited in some places, some are not
- PA must have proper knowledge for if they are prohibited or not
do inducements not prohibited by law still propose a threat?
yes, for FPs
what would be considered improper influencing?
- causing someone to act in an unethical manner
- determine if there is actual intent
what breach can arise from improper inducements?
breach of integrity if PA offers/accepts/encourages the o/a of an inducement which is intended to improperly influence
what safeguards can be used for improper inducements?
- informing senior mgmt
- amending / terminating the relationship with the offeror
when does the conceptual framework apply for inducements?
when the PA determines there was no intention to improperly influence
what do we do with inducements deemed to be trivial or inconsequential?
any threats will be at an acceptable level; so nothing
which threats can be created by inducements?
- self-interest
- familiarity
- intimidation
what actions can eliminate threats from inducements?
- declining / not offering
- transferring resp to another individual who will likely not be influenced by the inducement
what are some safeguards for inducements?
- be transparent with senior mgmt
- registering inducement in a log
- donate to charity
- reimburse the cost
- return
what is the process for inducements to/from family members of the PA?
- remain alert
- determine / conclude if their is intent
- advise not to accept/offer
when may a threat to CPC compliance be created for family inducements?
- family members offers/accepts despite advice
- PA doesn’t believe there is an intent to influence
