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
who can commit NOCLAR?
- employing organization
- TCWG
- mgmt
- workers
what must the PA do ito legal provisions for NOCLAR?
- obtain an understanding and comply with laws
- know if they must report
- know if they are prohibited from notifying the person who NOCLARs
what are the resp of TCWG and mgmt ito of NOCLAR?
must identify and address any NOCLAR by members, the org, TCWG
what is the responsibility of senior mgmt for NOCLAR?
there is a greater expectation for them to take action, in the interest of the public, against NOCLAR
what steps must a senior PA take if they suspect NOCLAR?
- obtain an understanding of the matter
- attempt to get the matter investigated internally
- discuss with superior
- assess the response of superiors
- determine if further action needs to take place
with whom can a senior PA consult for NOCLAR?
- internally
- legal advice
- professional body
when should the senior PA disclose the NOCLAR to an appropriate authority?
when it would not be contrary to the law; otherwise, it will help with the investigation of the matter
what should the senior PA do when making disclosure of NOCLAR?
- act in good faith
- exercise caution
what must the senior PA document for NOCLAR?
- matter
- results of discussions
- how superiors responded
- courses of action considered
why would the senior PA take further action against NOCLAR?
in the public interest
what steps must a regular PA take against NOCLAR?
- obtain an understanding of the matter
- apply knowledge and exercise professional judgement
- inform an immediate superior
- disclose to authority in exceptional circumstances
what shall a PA not do ito pressure to breach FP?
- shall not allow pressure from others to allow in breach
- place pressure on others
what are some safeguards for pressure to breach FP?
- discuss with pressure exerter, superior
- disclose in line with company policy (whistleblowing)
- consult
how can threats be eliminated for pressure to breach FP?
restructure of resp so that PA no longer has to be involved with the exerter
what must the senior PA do if he suspects an imminent breach?
- first consider whether to discuss with mgmt / TCWG
- exercise professional judgement
- determine whether to disclose to an appropriate authority
