Sorry for the delay in adding a new post, I’ve been swamped with work and trying to finish up my last class. I also have 2 year old twins as I mentioned before and when I have them I’m either:
– too busy and hectic running around trying to keep up with them all day
– too tired at night after trying to keep up with them all day
So that’s been limiting my study time. Classes end next week so I’ll be able to free up enough time to focus on the exam.
I was able to get a couple of hours in this morning and decided to recap the first 2 readings to make sure I was comfortable with the standards. After the first Stalla class session which covers Ethics, I won’t be touching this material until review time in November so I wanted to make sure I got all my notes down.
Since I haven’t received my Stalla material yet, I used some 2007 Schweser videos for these two readings. The content is almost identical to the 2008 LOS’ so I felt confident using the videos in conjunction with the CFAI book.
I used Microsoft OneNote to take notes for these two readings but converted to Word 2007 format. It’s long so I won’t post it here, but here’s a link to it. If anyone wants it in a different format, email me and I’ll convert it and send to you.
I’m glad I went back and reviewed this material again. My approach was to watch the lecture and at the same time highlight key points in the CFAI book. When the lecture got to the application section, they would only do one case so I paused the video and went thru each example in the CFAI book to make sure I got it. On this second glance, the material was not too difficult if you can remember the gotcha’s and key points to remember. What I go away with from these readings is:
– disclose, disclose, disclose and when in doubt, disclose.
– The Loyalty Food Chain is Clients, Markets, Employers, Yourself. A few of the standards are nothing more than making sure you have this hierarchy correct. Anything that would put it out of order is most likely a violation.
– Piggybacking of the point above, Section III about duties to clients is probably the most important one.
– Confidentiality is key even if disclosure of information would be beneficial to client. It’s easy to not remember this and get a question wrong because you thought you had your clients best interests’ in mind.
– You MUST read these questions slowly and sometimes 2x. The relationships must be clear and you can easily get confused who’s doing what for whom. These questions should not be blown thru on the actual exam. I’ll be making sure to time myself to see how long it takes me to finish the ethics section. You don’t want to rush thru these questions since this section is the tiebreaker but you also don’t want to spend too much time on it either. Definitely one of the metrics I’ll be watching during my prep.
Tonight I’ll review readings 3 and 4(the GIPS) and just answer tons of questions. After the Stalla review this week I’m sure I’ll have a decent enough handle on it to put it to rest until November.
As I said before, the key to ace this section is lots and lots of questions. More so than other sections I’d imagine since this whole topic a bunch of gray areas.