A Two-Part Model for Mitigating Violations of Codes of Conduct: Analysis of a Case Study

Practical Applications Summary

In A Two-Part Model for Mitigating Violations of Codes of Conduct: Analysis of a Case Study, from the Summer 2018 issue of the Journal of Investing, author Majed R. Muhtaseb (of California State Polytechnic University in Pomona, CA) uses a case study to illustrate violations industry norms and to explore a two-part model for mitigating those violations. The case study involves an international bank that used local media to offer prospective investors an opportunity to subscribe to shares in an IPO. The two-part model consists of Gardner and Shulman’s professional framework and the Code of Ethics and Standards of Professional Conduct developed by the CFA Institute. Muhtaseb recommends that institutions adopt the two-part model to help mitigate compliance risk.

TOPICS: Legal/regulatory/public policy, legal and regulatory issues for structured finance