The Glenarm Company Case Report
The Glenarm Company Case Report
Executive Summary
The Glenarm Company case study is based on Peter Sherman, CFA holder, and the ethical implications involved with his move from Pearl Investment Management to the Glenarm Company for a new position. This is Sherman’s last week working at Pearl for 5 years as a junior research analyst before he moves to his new employer Glenarm as a portfolio manager. The past history of the Glenarm Company regarding ethical problems has set the circumstances (which can be viewed as ethically dubious) to allow the opportunity for Sherman to switch firms. This switch has then also given Sherman the opportunity and incentive to perform illegal and immoral actions that can help or hinder either of these firms. Another individual of interest is John Lawrence, CFA, who works at Glenarm Company. He has acted questionably in a moral sense if not necessarily in a legal one, and his actions should not be overlooked given the fact that he is a CFA charterholder and is supposed to uphold fair and ethical practices in the finance world. Certain policies should have been enforced by both firms that would have encouraged more ethical practices that would not have caused any conflicts of interest between employers, employees or their clients.
Ethical and Standard Violations
Peter Sherman has been looking to increase Glenarm Company’s client base by contacting clients that are associated with Pearl. He goes about this in a number of ways, and his actions breach the guidance for standards set by the CFA Institute. Sherman is contacting active Pearl clients outside of business hours through “social calls”, enticing them to switch their accounts to be handled by Glenarm after he leaves Pearl. It is already unethical that he is calling them outside of business hours to conduct “business”, and they are actions that are considered violations in Standard IV -
Executive Summary
The Glenarm Company case study is based on Peter Sherman, CFA holder, and the ethical implications involved with his move from Pearl Investment Management to the Glenarm Company for a new position. This is Sherman’s last week working at Pearl for 5 years as a junior research analyst before he moves to his new employer Glenarm as a portfolio manager. The past history of the Glenarm Company regarding ethical problems has set the circumstances (which can be viewed as ethically dubious) to allow the opportunity for Sherman to switch firms. This switch has then also given Sherman the opportunity and incentive to perform illegal and immoral actions that can help or hinder either of these firms. Another individual of interest is John Lawrence, CFA, who works at Glenarm Company. He has acted questionably in a moral sense if not necessarily in a legal one, and his actions should not be overlooked given the fact that he is a CFA charterholder and is supposed to uphold fair and ethical practices in the finance world. Certain policies should have been enforced by both firms that would have encouraged more ethical practices that would not have caused any conflicts of interest between employers, employees or their clients.
Ethical and Standard Violations
Peter Sherman has been looking to increase Glenarm Company’s client base by contacting clients that are associated with Pearl. He goes about this in a number of ways, and his actions breach the guidance for standards set by the CFA Institute. Sherman is contacting active Pearl clients outside of business hours through “social calls”, enticing them to switch their accounts to be handled by Glenarm after he leaves Pearl. It is already unethical that he is calling them outside of business hours to conduct “business”, and they are actions that are considered violations in Standard IV -
Cited: CFA Institute. (2011). Guidance for Standards I-VII. CFA Institute. Holden, G. A. (n.d.). The Glenarm Company. Capitol Life Insurance Company.