2001-2002 annual report the los angeles society of financial … · 2012. 5. 21. · financial...

The Los Angeles Societyof

Financial Analysts, Inc.

Founded in 1931Charter member of the Financial Analysts Federation

and aMember Society of the Association for Investment Management and Research

2001-2002Annual Report

900 Wilshire Boulevard, Suite 1434Los Angeles, CA 90017Phone: (213) 627-1500

Fax: (213) 947-1102E-mail: [email protected]: www.lasfa.org

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Our Vision, Mission and Goals

Officers & Governors of the Society

President's Report

Past Presidents

Associated Groups

Society Award Recipients & Life Members

LASFA Committees

LASFA Membership Benefits

How To Become a Member

How to Become a Chartered Financial Analyst

Financial Statements for Year Ended August 31, 2002

Code of Ethics and Standards of Professional Conduct

Rules of Procedure for Proceedings Related to Professional Conduct

Bylaws and 2002 Membership Roster

Table of Contents

Administrative Office:The Los Angeles Society of Financial Analysts, Inc.

900 Wilshire Boulevard, Suite 1434, Los Angeles, California 90017Telephone (213) 627-1500 Facsimile (213) 947-1102

Website: www.lasfa.org e-mail: [email protected]

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Vision, Mission Statement and Goals

LASFA Mission Statement and Goals

Established in 1931, the Los Angeles Society of Financial Analysts (the Society) is a networkof investment management professionals in the greater Los Angeles area, affiliated with theAssociation for Investment Management and Research.

The mission of the Society is to provide access to information, expertise and personalinteraction to further members’ professional development and to promote the value of theprofession and the CFA designation.

The Society strives to fulfill this purpose as:

Ø a local Forum bringing together people, knowledge and practical experienceØ a respected Partner with other organization for the purpose of serving mutual

interests and the meaningful exchange of ideasØ a Premier Source for professional resources and developmentØ a powerful Voice representing ethical standards of practice and the interests and

value of the profession.

LASF

A V

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n LASFA Vision

The Los Angeles Society of Financial Analysts envisions a future in which:

Ø the services, skills and perspective of the investment professional are highly regardedas adding significant value to the investment decision-making process

Ø trust and personal interaction are the cornerstones of the investor/investment profes-sional relationship

Ø the prestige of the CFA designation is widely accepted within and outside of theinvestment community

Ø technology is utilized to the fullest as a vehicle to deliver information and education, notas a substitute for personal interaction

Ø the Society is the premier choice for access to professional information, personalinteraction, and practical experience and expertise

LASF

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PresidentMichael D. O'Brien, CFAMellon400 S. Hope St., Suite 400,Los Angeles, CA 90071Phone: (213) 553-9562Fax: (213) 629-0495e-mail: o'[email protected]

Vice PresidentJames M. Lyon, CFA, CICOakwood Capital Management, LLC1901 Avenue of the Stars, Suite 390Los Angeles, CA 90067Phone: (310) 772-2600Fax: (310) 772-2601e-mail: [email protected]

TreasurerDavid M. Ward, CFANorthern Trust Bank74-900 Highway 111, Suite 124Indian Wells, CA 92210Phone: (760) 776-1723Fax: (760) 776-4600e-mail: [email protected]

SecretaryJeffrey Anderson, CFATrust Company of the West865 South Figueroa StreetLos Angeles, CA 90017Phone: (213) 244-0094Fax: (213) 244-0741e-mail: [email protected]

Past PresidentJames P. Sarni, CFA, CICPayden & Rygel

Jeffrey B. Anderson, CFATrust Company of the West

Marie Beerens, CFAPayden & Rygel

Dennis GilkersonFirst Republic Bank - Private Banking

Victor Hawley, CFAReed, Conner, & Birdwell, LLC

James M. Lyon, CFA, CICOakwood Capital Management LLC

Michael D. O'Brien, CFAMellon

David Ward, CFANorthern Trust Bank

Wade T. Winter, CFAFour Corners Capital Management

Board of Governors2001-2002 OfficersO

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President's Report 2001-2002Pr

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1-02 President’s Report 2001-2002

The hallmark of our society is that we don’t sit on the sidelines and let others dictate to us. We focusour energies and our resources so that we are a critical part of the solution. Our members contributeat both the committee level and through grassroots activism. The strength of our society is our abilityto share the responsibility to influence the outcome, though we might not share the same opinionon a given issue.

We demonstrated this quality in 2002 through the role we played in the AIMR’s MandatoryContinuing Education Initiative. I would like to recognize the members of the Advocacy Committeefor the terrific job they performed in representing our members’ interests to the AIMR. JamesFletcher, CFA served as chairman of the committee that included Mark Duvall, CFA, Marla Harkness,CFA, James Lyon, CFA, CIC, and Philip Propper De Callejon. Thank you to all of the members ofLASFA who contributed by responding to the survey or by participating in the town hall discussions.In the future, I know that we will rise to the challenges that we encounter as we continue to worktogether to enhance the value of the Charter.

Year in and year out, it is the Program Committee that creates the opportunities for members tocontinue (on a voluntary basis) their professional development. Dennis Gilkerson has done awonderful job of leading this committee for the last 4 years. In 2001, we began a leadershiptransition designed to carry on the tradition of creating quality programs and to present them closerto where our members work. Mark Duvall, CFA, Charles Thuss III, CFA, and Dick McDonald, CFApicked up where Dennis left off. Under their leadership, the program committee put on more than25 programs with a cumulative attendance of more than 1000 members. The future of this veryimportant committee is in terrific hands.

It is said that imitation is the sincerest form of flattery. How then would you compliment a programthat is so good that others don’t copy it, they pay us to use it? Such is the case with the LASFA/USC CFA Review Program. This year more than 300 CFA candidates participated in the local reviewclasses. Countless other candidates from other societies around the world benefited from the qualityinstruction provided by our review program via videotape. Thanks to Wade Winter, CFA and DennisDraper, Ph.D., for another outstanding year for the review program.

I appreciate the opportunity you have given me to serve as the president of LASFA. I would like tothank my fellow board members, both past and present, and the numerous volunteers who I have hadthe chance to work with over the years. Last, but not least, I would like to thank Jodi True for all ofthe administrative support she has provided this past year.

Respectfully submitted,Michael D. O’Brien, CFAPresident, 2001-2002

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Past

Pre

side

nts

Past Presidents

F.J. Thieme, Jr. 1931

O.B. Lighthill 1932

J.L. Erickson 1933

L. Hartley Smith, CFA 1934

Rockwell Hereford 1935

Paul Wagenseller 1936

Charles H. Widmayer 1937

George W. Kassler 1938

K. Arnold Liljegren 1939

Jack Silvester 1940

George L. Parr 1941

Harvey Evans 1942

Kenneth D. Sanson 1943

Roger Pile 1944

Walter S. Weeks 1945

Theron Walker 1946

Jack R. Laznick 1947

Walter Fruehling 1948-49

Richard M. Link 1950

Walter Podolak 1951-52

Alfred Post 1953-54

Stanley J. Thompson 1955-56

L. Hartley Smith, CFA 1956

W. Murray Hawkins 1957-58

C.K. Corcoran 1958-59

Dwight Baum, CFA 1959-60

Douglas Fletcher, CFA 1960-61

Marjorie Fisher, CFA 1961-62

Allen D. Harper, CFA 1962-63

James B. Lester, CFA 1963-64

James Comeskey, CFA 1964-65

Marvin W. Drew, CFA 1965-66

James H. Wallace, CFA 1966-67

Kenneth Gerhardt, CFA 1967-68

Frank Foellmer, CFA 1968-69

Sheldon Collins, CFA 1969-70

David C. Pearson, CFA 1970-71

Roger L. Gewecke, CFA 1971-72

Donald L. Keene, CFA 1972-73

A.B. Ehlert, CFA 1973-74

Stanley D. Ryals, CFA 1974-75

Dennis R. Bouwer, CFA 1975-76

Francis X. Cloran, II, CFA 1976-77

David F. Allen, CFA 1977-78

James C. Reed, CFA 1978-79

Theodore Congdon, CFA 1979-80

John C. Sherman, CFA 1980-81

James K. Dunton, CFA 1981-82

Dorothea Zimberoff, CFA 1982-83

Albert W. Sanborn, CFA 1983-84

Robert B. Hardaway, Jr., CFA 1984-85

William L. Krantz, CFA 1985-86

Shelley N. Grudin, CFA 1986-87

Danford E. Hand, CFA 1987-88

Phyllis G. Thomas, CFA 1988-89

Jean V. Keatley, CFA 1989-90

Frank C. Dohn, CFA 1990-91

Glen A. Holden, Jr., CFA 1991-92

Victor S. Sidhu, CFA 1992-93

Michael F. Schaible, Jr., CFA 1993-94

James H. Fletcher, CFA 1994-95

Karen McCue, CFA 1995-96

Maureen F. Gallogly, CFA 1996-97

Marla L. Harkness, CFA 1997-98

Richard Barnett, CFA 1998-99

David Dahl, CFA 1999-00

James Sarni, CFA, CIC 2000-01

Michael O'Brien, CFA 2001-02

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USC/LASFA CFA Review ProgramCo-Directors: Wade T. Winter, CFA & Dennis Draper, Ph.D.

Administrative Office Telephone: (213) 627-1230 * Fax: (213) 947-1102e-mail: [email protected]

Since 1984, Los Angeles Society of Financial Analysts, Inc. (“LASFA”) in partnership with the University of SouthernCalifornia, Marshall School of Business (“USC”) has offered two CFA® Review Programs at each level of the CFA®Study and Examination Program: a Weekly Review Course and a 2-Day Review Course. This year we will beintroducing several new features to our CFA® Review Programs including Schweser Study Notes, Schweser Pro, anda full length practice exam to be held in May, 2003. In addition, we will also be introducing a Saturday Review Coursefor Level I and Level II candidates.

The Weekly Review Course and the Saturday Review Course provide candidates with a structured, classroom basedapproach to preparing for the CFA® examination. The program is designed to assist candidates in mastering the AIMRCandidate Body of Knowledge. The focus of the Review Courses is on the comprehension of the assigned materialsin the Study Guides with an emphasis on the Learning Outcome Statements (LOS). In addition, problem solving, a fulllength practice exam and practical exam taking tips are incorporated into the program. The program covers alldisciplines on the exam. Candidates are expected to have completed the assigned readings each week prior to attendingclass. You may register on line at: http://www.lasfa.org/lasfa_cfmfiles/asp/cfainfo.asp

Quantitative Investment AssociationKaryn Williams, Ph.D., QIA President

Phone: (213) 627-1500 Fax: (213) 947-1102e-mail: [email protected]

The Quantitative Investment Association features presentations, meetings and seminars in the quantitative fieldgenerally the 4th Thursday, of every month. To be placed on the QIA e-mail list, please send name, e-mail addressto Karyn Williams at the above listed e-mail.

The Hawaii Society of Investment ProfessionalsAdmitted as Chapter of LASFA on June 8, 2002

Meetings are held in Honolulu - For more information, please go to:http://www.aimr.org/socservices/programs/socpage.asp?society=HAWAII

Membership Chairman: Steven Nieswander - [email protected]

William Barton President e-mail: [email protected] Chong Vice-President e-mail: [email protected] Sananikone Vice-President e-mail: [email protected] Cornwell, CFA Secretary e-mail: [email protected] Wehrly Treasurer e-mail: [email protected] Chang Member e-mail: [email protected] Issac Member e-mail: [email protected] McClain Member e-mail: [email protected] Ratte Member e-mail: [email protected] Ushijima Member e-mail: [email protected] Zerfoss Member e-mail: [email protected]

Associated GroupsA

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Soci

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ds Life MembersAwarded periodically as merited by the LASFA Board of Gover-nors to individuals whose contributions to the Society have beenso substantial and so exemplary that they deemed to be membersfor life in the Los Angeles Society of Financial Analysts

Frank C. Dohn, CFA 1999Robert B. Hardaway, Jr., CFA 1991Lucille Thompson (Hon.) 1991Marjorie Fisher, CFA 1986David C. Pearson, CFA 1979

Outstanding Society Member AwardsAwarded periodically as merited by the LASFA Board of Gover-nors to individuals who have remained active in the organizationafter the expiration of their tenure on the Board and/or whosecontribution and involvement continues to substantially benefitLASFA programs, activities and initiatives.

Dennis E. Gilkerson, CFA 2002Roxanne Cheng, CFA 2001James M. Lyon, CFA, CIC 2000James H. Fletcher, CFA 1998Glen A. Holden, CFA 1997William L. Krantz, CFA 1996Frank C. Dohn, CFA 1995Phyllis G. Thomas, CFA 1989Stanley D. Ryals, CFA 1988Robert B. Hardaway, Jr., CFA 1987Dr. Guilford C. Babcock 1986James K. Dunton, CFA 1984Shelley N. Grudin, CFA 1981Roger L. Gewecke, CFA 1980Dennis R. Bouwer, CFA 1978David C. Pearson, CFA 1977Donald L. Keene, CFA 1976

Governors’ Award

Shelly N. Grudin, CFA 1976

Outstanding Committee MemberAwarded annually by the LASFA Board of Governors to theindividual or individuals who have made substantial contribu-tions to the Society while either heading or acting as a memberof a LASFA committee during the previous year.

James M. Lyon, CFA, CIC 2002James H. Fletcher, CFA 2002Berkeley G. Harrison, CFA 2001Eric T. Smith, CFA 1999Margaret Mudd 1998Anita A. Brown, CFA 1997Roxanne Cheng, CFA 1997Peter B. Swank, Ph. D. 1997Michael D. O’Brien, CFA 1996Edward M. Boulter, CPA 1995

Emerging LeadersAwarded annually by the LASFA Board of Governors to theindividual or individuals who have demonstrated outstandingleadership characteristics in the course of work on a LASFAprogram, activity or initiative during the previous year.

Asha B. Joshi, CFA 2002Marie A. Beerens, CFA 2001David M. Ward, CFA 2000Leslie Richardson 1999Saeid Hamedanchi 1998Dennis E. Gilkerson 1997James M. Lyon, CFA 1996Karen L. Combs, CFA 1995Maye Hackworth, CFA 1995

Corporate AwardAwarded periodically by the LASFA Board of Governors to theorganization which has demonstrated significant support to theSociety’s programs, activities and initiatives in a substantial andcontinual way over the past year.

Wells Fargo 2002University of Southern California 2001Payden & Rygel 1999Smith Barney Company 1998Smith Barney Company 1997Jefferies & Company 1996Smith Barney Company 1995

Society Award Recipients & Life Members

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LASFA's CommitteesLA

SFA

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s AdvocacyConsiders current issues that are of importance to theprofession on which LASFA may choose to take aposition such as regulatory issues, legal issues, newethics requirements, accounting issues, etc.Chair: James Fletcher, CFAe-mail: [email protected]: James Altenbach, Richard Barnett, MarkDuvall, Marla Harkness, James Lyon, Radu Patrichi,Philip Propper De Callejon, Roberto Rivera, James Sarni

Annual MeetingMake arrangements and coordinate events for the An-nual Meeting.Chair: Victor Hawley, CFAe-mail: [email protected]

Annual ReportReview Annual Report and Membership Roster.Co-Chair: Lydia HowardCo-Chair: Michael Schaible, CFA

Audit & Accounting*Act as liaison with accounting profession; CoordinateLASFA’s annual financial audit with staff and arrangefor the auditors to make a formal report to the LASFABoard of Governors; Arrange for an orderly rotation fromone auditing firm to another by putting out Requests forProposal for auditing services well in advance, inter-viewing applicant accounting firms and making recom-mendations for future audit firms to the Board of Gover-nors; Arrange for an orderly transition from one account-ing firm to the next. Sponsor a topical program at leastannually that ad dresses concepts or activities thatimpact both the accounting/auditing profession andfinancial analysis/portfolio management.Chair: Norman Kulla, CFA e-mail: [email protected]: Gary Johnstone, CFA, CPA/ABV, StephenRemboski, CFA, Roberto Rivera

AwardsProcure awards as designated by the Board of Gover-nors; Awards will usually be given at the LASFA Annualmeeting.Chair: Eric Smith, CFAe-mail: [email protected]

CFA Charter EventMake arrangements and plan publicity for CFA Rec-ognition Event.Co-Chair: Marla Harkness, CFAe-mail: [email protected]: Michael O’Brien, CFAe-mail: o’[email protected]

CFA Exam SurvivorPlan activities, publicize and make arrangements forpost CFA exam mixer for local Candidates and Societyleaders. Coordinate arrangements with OCSIM as nec-essary.Chair: James Lyon, CFA, CICe-mail: [email protected]: Krista Zipfel, CFAe-mail: [email protected]: Shawn Tsai

Chartered Financial Analysts*Act as liaison with Institute of Chartered FinancialAnalysts, administer CFA review seminars and arrangeinformal CFA study groups.Co-Chair: Wade T. Winter, CFAe-mail: [email protected]: Dennis Draper, Ph.D.e-mail: [email protected] I Coordinators: Jeffrey Anderson, CFA, Kevin Isawa,CFA, James Lewis, CFA, Jean Li, CFA, Kenneth Yee,CFA, CPALevel II Coordinators: Paula Blacher, CFA, John Phillips,CFA, David Ward, CFALevel III Coordinators: Roger Gewecke, Jr., CFA , JaniceHazeltine, CFA, William Krantz, CFA, AndrewShuleschenko, CFA,

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SFA

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s Education*Develop continuing education programs, includingseminars, Basic Accounting, Foundations of Invest-ment courses, a Fixed Income series and other invest-ment courses of interest to LASFA members. Serve asliason with local colleges and universities in sponsoringstudent participation in the Society’s programs.Chair: Berkeley Harrison, CFAe-mail: [email protected]: Ashish Vaidya, Ph.D.e-mail: [email protected]: David Bird, Laurence Brody, George Dennis,Steven Kiser, John Lacey, Charles Thuss, Andrew Watts

The Hawaii Society of Investment ProfessionalsAdmitted as Chapter of LASFA on June 8, 2002Meetings are held in Honolulu - For more information,please go to: http://www.aimr.org/socservices/pro-grams/socpage.asp?society=HAWAIIMembership Chairman: Steven NieswanderWilliam Barton Presidente-mail: [email protected] Chong Vice-Presidente-mail: [email protected] Sananikone Vice-Presidente-mail: [email protected] Cornwell, CFA Secretarye-mail: [email protected] Wehrly Treasurere-mail: [email protected] Chang Membere-mail: [email protected] Issac Membere-mail: [email protected] McClain Membere-mail: [email protected] Ratte Membere-mail: [email protected] Ushijima Membere-mail: [email protected] Zerfoss Membere-mail: [email protected]

Inside InformationPublish newsletter highlighting Society activities.Chair: Marie Beerens, CFAe-mail: [email protected]: Jodi True Phone: 213-627-1500 x 207Fax: 213-947-1102; e-mail: [email protected]: Cynthia Harrington, Richard Roth

Membership Involvement CommitteeInvite new members to become involved in LASFAcommittees and projects.Chair: David Ward, CFAe-mail: [email protected]: Michael O’Brien, CFAe-mail: o’[email protected]

Membership*The committee reviews applications and approves quali-fied membership candidates.Chair: Victor Hawley, CFAe-mail: [email protected]: Paul Spiro, CFAe-mail: [email protected]

Nominating*Identifies and nominates to the Board of Governorsmembers of the Society for consideration as officers andGovernors of the Society. Also identifies potential nomi-nees to AIMR positions and committees. Identifies andnominates potential annual award recipients.Chair: Michael O’Brien, CFAe-mail: o’[email protected]: James Lyon, CFA, CICe-mail: [email protected]: Doug Achtemeier, Jeffrey Anderson, DavidWard

Operating CommitteeOversees the operations of the Society, including theSociety’s administrative offices and staff.Chair: Michael O’Brien, CFAe-mail: o’[email protected]: James Lyon, CFA, CICMembers: Doug Achtemeier, Jeffrey Anderson, DavidWard

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Placement*Provides an on-line listing of job opportunities in thefinancial service profession. Coordinates the AnnualCareer Expo and chairs topical meetings on careerissues.Chair: Roxanne Cheng, CFAe-mail: [email protected]: Jeffrey Anderson, Donald Brown, Adam Cop-persmith, David Dahl, Christopher Glennon, BerkeleyHarrison, Mario Ignacio

Public AwarenessIncrease awareness of LASFA and the CFA Charterwithin the investment community and among otherprofessionals, investors and the media. Improve aware-ness of high ethical standards, professionalism, exper-tise and integrity of the investment profession.Chair: Marie Beerens, CFAe-mail: [email protected]: A. Harbour, Cynthia Harrington, DanielNikaiyn, Richard Roth

Quantitative Investment AssociationFeatures presentations, meetings and seminars in thequantitative field generally the 4th Thursday, of everymonth.Chair: Karyn Williams, Ph.D.e-mail: [email protected]

ScholarshipReview scholarship applications and make scholarshipaward recommendations to the Board of Governors; ar-range for scholarships to be awarded on behalf of LASFAand AIMR to CFA candidates. Chair: Asha Joshi, CFAe-mail: [email protected]: Andrew Lahde, CFAe-mail: [email protected]

SocialOrganize social activities for networking opportunities.Chair: open


SFA

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omm

ittee

s Speakers BureauImplement a public speaking program to educate thepublic about the profession and the Society and itsactivities.Chair: H. Eugene Nolle-mail: [email protected]: Gary Caine, Roxanne Cheng, MaureenGallogly, William Mason, Michael O’Brien

Technology and CommunicationMaintain web site and review innovative ways to improvecommunication to the membership.Chair: Doug Achtemeier, CFAe-mail: [email protected]: Aziz Ihani, Jean Li-Smith, Armin Pajand,David Ward

Topical and Program*Plan Society programs for the year. Organize topicaleducational programs and seminars for the Society.Provide a forum in which investment professionals canmaintain and update their knowledge on investment-related issues and topics. Invite companies to appear,coordinate arrangements with Administrative office andchair meetings.Co-Chair: Mark Duvall, CFAe-mail: [email protected]: Richard McDonald, CFAe-mail: [email protected]: Charles Thuss, CFAe-mail: [email protected]: James Altenbach, Suzann Cohen, GeorgeDennis, Dennis Gilkerson, Saeid Hamedanchi, RobertMaltbie, Madeleine Mamaux, Michael O’Brien, PremRaniga, James Sarni, Jamison Van Niel

* Standing Committees (called for in Article VIII of theSociety’s By-Laws) are noted. To become more involvedin the open committees, contact the LASFA office at(213) 627-1500 or call the Chair of the committee.

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The Los Angeles Society of Financial Analysts, Inc. (LASFA) provides a professional forum to educate andinform participants in the investment decision-making process, promotes professional behavior and high ethicalstandards, and enhances the professional knowledge of our membership and general knowledge of economics andfinance in the larger community.

In partnership with the Association for Investment Management and Research (AIMR), LASFAconducts high quality programs and disseminates information and ideas relating to investments. The AIMR isdedicated to promoting ethics and standards of conduct, education and professional certification, and guidelinesfor professional practice.

Local events are held throughout the year including topical programs, accounting and economic seminars,the Foundations of Investments courses, continuing education courses, conferences, and quantitative meetings.In addition corporate presentations are made by the management of major corporations to LASFA members andtheir guests.

The Annual Report/Membership Directory and quarterly Inside Information newsletter are distributed to ourmembers. Placement listings and publications are also available through LASFA and AIMR.

The AIMR is an international organization of investment professionals serving over 100,000 members,including research analysts, investment counselors, strategists, portfolio managers, consultants, and others alliedto the field of financial analysis. These professionals practice in a variety of fields including: investment counselingand management, banking, insurance, investment banking and securities brokerage. When you join one of the 100member societies and chapters, you are a member of AIMR.

The two categories of membership are Regular and Affiliate. The only difference between a Regular andAffiliate member is that Regular members can vote on AIMR issues. If you desire to apply for membership,complete and return an application, which can be ordered through AIMR at (434) 951-5499 or LASFA at (213)627-1500.

To become a regular member of AIMR, complete the examination series for certification as a CharteredFinancial Analyst (CFA). For CFA exam information call (434) 951-5499. Candidates enrolled in the programcan apply for membership but are not members until they make application are accepted by the society. In supportof this exam process, each year LASFA offers a 20-Week CFA Review Course and a Two-Day Review,cosponsored with the University of Southern California.

Once AIMR receives your membership application with two sponsors, it is submitted to the MembershipCommittee and then to the Board of Governors to be formally approved. Regular and Affiliate LASFA dues are $125per year and AIMR dues (for charterholders) are $225 per year (these are invoiced together, upon approval); ifyou are a non-charterholder, AIMR dues are $150 per year. After AIMR dues are paid, you will begin receivingprogram information and the Financial Analysts Journal, AIMR Newsletter, Standards of Practice Handbook and AIMRMembership Directory. A broad spectrum of publications is also available for purchase.

Membership BenefitsM

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For an application:Call the LASFA office at (213) 627-1500 orCall AIMR at (434) 951-5499 or (800) 247-8132

You may also download a membership applicationfrom the AIMR website at:http://www.aimr.org/pdf/memapp.pdf

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There are two types of membership offered, Regular and Affiliate. Two sponsors are required for both categoriesof membership from:

1) Your immediate supervisor; and2) A LASFA member in good standing and personally known to you.

A. To be accepted as a Regular member, an individual must:Ø have a bachelor’s degree or equivalent education or work experience;Ø agree to adhere to the Code of Ethics and Standards of Professional Conduct;Ø have three years of acceptable professional work experience in the investment decision making process and

pass the CFA Level I examination;

or

Ø have six years of acceptable professional work experience in the investment decision-making process andpass a self-administered standards of practice examination offered by AIMR;

or

Ø be at the time of admission a CFA; andØ be either engaged in such acceptable professional work at the time of application

or

Ø have acceptable work experience consisting of (a) collecting, evaluating or applying financial, economicor statistical data as appropriate as part of the investment decision-making process, or (b) supervisingdirectly or indirectly those who practice such activities, or (c) teaching such activities.

B. LASFA accepts as members those individuals who do not qualify as Regular members. Affiliatemembership requires that the applicant:

Ø agree to adhere to the Code of Ethics and Standards of Professional Conduct; andØ be an active candidate for the CFA examination;Ø or be a person whose primary interests are closely allied to the objectives of LASFA.

For an application:Call the LASFA office at (213) 627-1500 orCall AIMR at (434) 951-5499 or (800) 247-8132

You may also download a membership application from the AIMR website at:http://www.aimr.org/pdf/memapp.pdf

How To Become A MemberH

ow to

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A CFA Charter represents the combination of academic achievement and professional experience. Over18,500 investment professionals have earned the CFA charter since it was first awarded in 1963.

Candidates for the CFA charter must pass a series of three comprehensive, rigorous examinations over aminimum of three years. On average, candidates spend an estimated 200 hours of individual study preparing for eachof these six-hour exams. Candidates study a comprehensive curriculum based on a defined Body of Knowledge.Study guides lead candidates through an assigned program of textbooks and readings covering the basic Body ofKnowledge, investment techniques and analytical approaches, and the broad range of investment choices available.

To be awarded the CFA charter, the candidate must:

Ø sequentially pass the Level I, Level II and Level III examinations;

Ø have at least three years of acceptable professional work experience in the investmentdecision making process;

Ø apply concurrently for membership in AIMR and in a local Financial Analysts Federation(FAF) society, such as LASFA;

Ø have evidenced a high level of professional, financial, business and personal conduct;

and

Ø comply with the AIMR Code of Ethics and Standards of Professional Conduct.

To apply for the CFA program, contact AIMR’s Candidate Program department at (800) 247-8132 or faxa letter of interest to (804) 951-5262 or download an application from their website at:http://www.aimr.org/cfaprogram/index.html

Since 1984, the USC/LASFA CFA Review Program has experienced record enrollment. The Program is taughtby practitioners from LASFA and academics from surrounding universities, most of whom are holders of the CFACharter. The course is held from early January through May, culminating in a Two-Day Review, which may be takenseparately. Registration for the Course takes place in mid-November. Limited availability.

For information on the USC/LASFA CFA Review Program call (213) 627-1230 or go to our website at:http://www.lasfa.org/lasfa_cfmfiles/asp/cfainfo.asp

How To Become A Chartered Financial Analyst H

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Financial Statements

THE LOS ANGELES SOCIETY OFFINANCIAL ANALYSTS, INCORPORATED

August 31, 2002

Fina

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CERTIFIED PUBLIC ACCOUNTANTS

300 NO. LAKE AVE., STE. 930, PASADENA, CA 91101 TEL: (626) 577-1440 FAX: (626) 577-1082

INDEPENDENT AUDITOR'S REPORT

To the Board of Governors The Los Angeles Society of Financial Analysts, Incorporated Los Angeles, California We have audited the accompanying statements of assets and net assets - cash basis of The Los Angeles Society of Financial Analysts, Incorporated (a California nonprofit organization) as of August 31,2002, and the related statements of revenue, expenses, and changes in net assets - cash basis and functional expenses - cash basis for the year ended August 31, 2002. These financial statements are the responsibility of The Los Angeles Society of Financial Analysts, Incorporated management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in Note 1, the financial statements have been prepared on the cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Los Angeles Society of Financial Analysts, Incorporated as of August 31, 2002, and its revenue, expenses, and other changes in net assets for the year then ended, in conformity with the basis of accounting described in Note 1.

December 2, 2002

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Association for investmentManagement and Research

The Code of Ethics andStandards of Professional Conduct

As amended and restated May, 1999.

The Code of EthicsMembers of the Association for Investment Management and Research shall:¨ Act with integrity, competence, dignity, and in an ethical manner when dealing with the public, clients, prospects, employers,

employees, and fellow members.¨ Practice and encourage others to practice in a professional and ethical manner that will reflect credit on members and their

profession.¨ Strive to maintain and improve their competence and the competence of others in the profession.¨ Use reasonable care and exercise independent professional judgment.

The Standards of Professional ConductStandard I: Fundamental ResponsibilitiesMembers shall:A. Maintain knowledge of and comply with all applicable laws,

rules, and regulations (including AIMR’s Code of Ethicsand Standards of Professional Conduct) of any government,governmental agency, regulatory organization, licensingagency, or professional association governing the members’professional activities.

B. Not knowingly participate in or assist any violation of suchlaws, rules, or regulations.

Standard II: Relationships with and Responsibilities to theProfessionA. Use of Professional Designation.1. AIMR members may reference their membership only in a

dignified and judicious manner. The use of the referencemay be accompanied by an accurate explanation of therequirements that have been met to obtain membership inthese organizations.

2. Those who have earned the right to use the CharteredFinancial Analyst designation may use the marks “Char-tered Financial Analyst” or “CFA” and are encouraged to doso, but only in a proper, dignified, and judicious manner.The use of the designation may be accompanied by anaccurate explanation of the requirements that have been metto obtain the right to use the designation.

3. Candidates in the CFA Program, as defined in the AIMRBylaws, may reference their participation in the CFA Pro-gram, but the reference must clearly state that an individualis a candidate in the CFA Program and cannot imply that thecandidate has achieved any type of partial designation.

B. Professional Misconduct.1. Members shall not engage in any professional conduct

involving dishonesty, fraud, deceit, or misrepresentation or

commit any act that reflects adversely on their honesty,trustworthiness, or professional competence.

2. Members and candidates shall not engage in any conductor commit any act that compromises the integrity of the CFAdesignation or the integrity or validity of the examinationsleading to the award of the right to use the CFA designation.

C. Prohibition against Plagiarism. Members shall not copyor use, in substantially the same form as the original,material prepared by another without acknowledging andidentifying the name of the author, publisher, or source ofsuch material. Members may use, without acknowledgment,factual information published by recognized financial andstatistical reporting services or similar sources.

Standard III: Relationships with and Responsibilities to theEmployerA. Obligation to Inform Employer of Code and Standards.Members shall:1. Inform their employer in writing, through their direct super-

visor, that they are obligated to comply with the Code andStandards and are subject to disciplinary sanctions forviolations thereof.

2. Deliver a copy of the Code and Standards to their employerif the employer does not have a copy.

B. Duty to Employer. Members shall not undertake anyindependent practice that could result in compensation orother benefit in competition with their employer unless theyobtain written consent from both their employer and thepersons or entities for whom they undertake independentpractice.

C. Disclosure of Conflicts to Employer. Members shall:1. Disclose to their employer all matters, including beneficial

ownership of securities or other investments, that reasonablycould be expected to interfere with their duty to theiremployer or ability to make unbiased and objective recom-

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mendations.2. Comply with any prohibitions on activities imposed by their

employer if a conflict of interest exists.D. Disclosure of Additional Compensation Arrangements.

Members shall disclose to their employer in writing allmonetary compensation or other benefits that they receivefor their services that are in addition to compensation orbenefits conferred by a member’s employer.

E. Responsibilities of Supervisors. Members with supervi-sory responsibility, authority, or the ability to influence theconduct of others shall exercise reasonable supervision overthose subject to their supervision or authority to prevent anyviolation of applicable statutes, regulations, or provisions ofthe Code and Standards. In so doing, members are entitledto rely on reasonable procedures to detect and prevent suchviolations.

Standard IV: Relationships with and Responsibilities toClients and ProspectsA. Investment Process.1. Reasonable Basis and Representations. Members shall:a. Exercise diligence and thoroughness in making investment

recommendations or in taking investment actions.b. Have a reasonable and adequate basis, supported by appro-

priate research and investigation, for such recommenda-tions or actions.

c. Make reasonable and diligent efforts to avoid any materialmisrepresentation in any research report or investment rec-ommendation.

d. Maintain appropriate records to support the reasonablenessof such recommendations or actions.

2. Research Reports. Members shall:a. Use reasonable judgment regarding the inclusion or exclu-

sion of relevant factors in research reports.b. Distinguish between facts and opinions in research reports.c. Indicate the basic characteristics of the investment involved

when preparing for public distribution a research report thatis not directly related to a specific portfolio or client.

3. Independence and Objectivity. Members shall use reason-able care and judgment to achieve and maintain indepen-dence and objectivity in making investment recommenda-tions or taking investment action.

B. Interactions with Clients and Prospects.1. Fiduciary Duties. In relationships with clients, members

shall use particular care in determining applicable fidu-ciary duty and shall comply with such duty as to thosepersons and interests to whom the duty is owed. Membersmust act for the benefit of their clients and place theirclients’ interests before their own.

2. Portfolio Investment Recommendations and Actions.Members shall:a. Make a reasonable inquiry into a client’s financial situation,

investment experience, and investment objectives prior tomaking any investment recommendations and shall updatethis information as necessary, but no less frequently than

annually, to allow the members to adjust their investmentrecommendations to reflect changed circumstances.

b. Consider the appropriateness and suitability of investmentrecommendations or actions for each portfolio or client. Indetermining appropriateness and suitability, members shallconsider applicable relevant factors, including the needsand circumstances of the portfolio or client, the basiccharacteristics of the investment involved, and the basiccharacteristics of the total portfolio. Members shall notmake a recommendation unless they reasonably determinethat the recommendation is suitable to the client’s financialsituation, investment experience, and investment objec-tives.

c. Distinguish between facts and opinions in the presentationof investment recommendations.

d. Disclose to clients and prospects the basic format andgeneral principles of the investment processes by whichsecurities are selected and portfolios are constructed andshall promptly disclose to clients and prospects any changesthat might significantly affect those processes.

3 . Fair Dealing. Members shall deal fairly and objectivelywith all clients and prospects when disseminating invest-ment recommendations, disseminating material changes inprior investment recommendations, and taking investmentaction.

4 . Priority of Transactions. Transactions for clients andemployers shall have priority over transactions in securitiesor other investments of which a member is the beneficialowner so that such personal transactions do not operateadversely to their clients’ or employer’s interests. If membersmake a recommendation regarding the purchase or sale ofa security or other investment, they shall give their clientsand employer adequate opportunity to act on their recom-mendations before acting on their own behalf. For purposesof the Code and Standards, a member is a “beneficial owner”if the member has

a. A direct or indirect pecuniary interest in the securities;b. The power to vote or direct the voting of the shares of the

securities or investments;c. The power to dispose or direct the disposition of the security

or investment.5. Preservation of Confidentiality. Members shall preserve

the confidentiality of information communicated by cli-ents, prospects, or employers concerning matters within thescope of the client-member, prospect-member, or employer-member relationship unless a member receives informationconcerning illegal activities on the part of the client, pros-pect, or employer.

6. Prohibition against Misrepresentation. Members shallnot make any statements, orally or in writing, that misrepre-sent

a. The services that they or their firms are capable of perform-ing;

b. Their qualifications or the qualifications of their firm;

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c. The member’s academic or professional credentials.Members shall not make or imply, orally or in writing, anyassurances or guarantees regarding any investment exceptto communicate accurate information regarding the termsof the investment instrument and the issuer’s obligationsunder the instrument.

7. Disclosure of Conflicts to Clients and Prospects. Mem-bers shall disclose to their clients and prospects all matters,including beneficial ownership of securities or other invest-ments, that reasonably could be expected to impair themembers’ ability to make unbiased and objective recom-mendations.

8. Disclosure of Referral Fees. Members shall disclose toclients and prospects any consideration or benefit receivedby the member or delivered to others for the recommendationof any services to the client or prospect.

Standard V: Relationships with and Responsibilities to thePublicA. Prohibition against Use of Material Nonpublic Infor-

mation. Members who possess material nonpublic informa-tion related to the value of a security shall not trade or causeothers to trade in that security if such trading would breacha duty or if the information was misappropriated or relates toa tender offer. If members receive material nonpublicinformation in confidence, they shall not breach that con-fidence by trading or causing others to trade in securities towhich such information relates. Members shall make rea-sonable efforts to achieve public dissemination of materialnonpublic information disclosed in breach of a duty.

B. Performance Presentation.1. Members shall not make any statements, orally or in writing,

that misrepresent the investment performance that they ortheir firms have accomplished or can reasonably be ex-pected to achieve.

If members communicate individual or firm performance infor-mation directly or indirectly to clients or prospective clients, orin a manner intended to be received by clients or prospectiveclients, members shall make every reasonable effort to assure thatsuch performance information is a fair, accurate, and completepresentation of such performance.

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Association for investmentManagement and Research

RULE 1: PREAMBLE“Covered Person(s),” as defined in Article 2 of the Association forInvestment Management and Research (AIMR) Restated Bylaws(herein “Bylaws”), are required to conduct their activities inaccordance with the AIMR Code of Ethics and Standards ofProfessional Conduct (herein “Code and Standards”). Thisdocument, “Rules of Procedure for Proceedings Related to Pro-fessional Conduct” (herein “Rules of Procedure” or “the rules”),governs the procedures to which both AIMR and Covered Personsmust adhere during a professional conduct investigation. 1RULE 2: DISCIPLINE2.1 Authority of the Professional Conduct Committees.The Professional Conduct Committees shall conduct disciplin-ary investigations and impose disciplinary sanctions on CoveredPersons in accordance with the Bylaws and the Rules of Procedure.The Professional Conduct Committees may exercise their au-thority and duties through subcommittees, hearing panels, andreview panels and as otherwise permitted in the Bylaws, withpositions on the said subcommittees, hearing panels, and reviewpanels to be filled by members of Professional Conduct Commit-tees and members of the AIMR Board of Governors. The Disciplin-ary Review Committee (herein “DRC”) is responsible for(a) Enforcement of the Code and Standards;(b) Reviewing and recommending amendments to the Rules of

Procedure;(c) Reviewing and approving all stipulated disciplinary mat-

ters;(d) On request of the Designated Officer, reviewing and approv-

ing “Summary Suspensions,” as defined herein;(e) Undertaking such other activities, as determined by the DRC

and approved by the Oversight Committee designated by theBoard, to maintain the integrity of AIMR membership andthe Chartered Financial Analyst (CFA®) designation; and

(f) Engaging in such other activities as the AIMR Chair, Board,or applicable Oversight Committee may request.

The Standards and Policy Committee (“SPC”) is responsible for(a) Reviewing and revising the Code and Standards;(b) Promoting the Code and Standards;(c) Reviewing and revising AIMR’s Standards of Practice Hand-

book and similar publications;(d) Reviewing and revising AIMR’s Standards of Practice exami-

nation;(e) Reviewing and revising AIMR’s annual Professional Con-

duct Statement;(f) Assisting in professional conduct investigations, hearings,

or review panels;(g) Undertaking such other activities to promote ethics and

professional conduct for individual members, member so-cieties, member chapters, and all others involved in theinvestment decision-making process; and

(h) Engaging in such other activities as the AIMR Chair, Board,or applicable Oversight Committee may request.

2.2 Grounds for Discipline.Disciplinary action may be imposed on Covered Persons for(a) Violation of AIMR’s Articles of Incorporation (“Articles”)

and Bylaws, the Code and Standards, the Member’s Agree-ment, and/or the Rules of Procedure or other applicablerules;

(b) The imposition of a disciplinary sanction or injunction bya governmental or judicial agency or by a public or privateself-regulatory organization with jurisdiction over any as-pect of the investment decision-making process;

(c) Conviction of or guilty plea to a crime defined as a felonyunder the laws of the convicting jurisdiction or, if the lawsof the convicting jurisdiction do not define felony, any crimepunishable by more than one year in prison;

(d) Having been barred permanently, or for an indefinite periodof time, from registration under the securities laws or similarlaws relating to the investment decision-making process orfrom association or affiliation with a governmental or judi-cial agency or by a public or private self-regulatory organi-zation with jurisdiction over the investment decision-mak-ing process;

(e) Falsification of information on CFA Program enrollmentapplications or Member Society or Member Chapter mem-bership applications; and/or

(f) Any “good cause,” which includes failure by a CoveredPerson to cooperate with AIMR in its inquiry and investiga-tion of the Covered Person’s professional conduct.

1 The Rules of Procedure are supplemental to and not in lieu of the Bylaws. Ifany conflict exists between the Rules of Procedure and the Bylaws, the Bylawsprevail.

2.3 Sanctions.Sanctions include the following actions:(a) Private Censure. The least severe sanction, private censure may

be announced publicly, as defined in Rule 2.5, but suchannouncement shall exclude the Covered Person’s name orother specifically identifying information.

(b) Public Censure. This sanction may be announced publicly as

RULES OF PROCEDURE FOR PROCEEDINGS RELATED TO PROFESSIONAL CONDUCTAs amended and restated April 30, 2000

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defined in Rule 2.5, and the announcement may include theCovered Person’s name.

(c) Suspension of Membership. Covered Person’s membership inAIMR, Member Societies, and/or Member Chapters is sus-pended for a specified period of time.

(d) Suspension of the Right to Use the CFA Designation. Covered Person’sright to use the CFA designation is suspended for a specifiedperiod of time.

(e) Revocation of Membership. A Covered Person’s membership inAIMR, Member Societies, and/or Member Chapters is per-manently revoked.

(f) Revocation of the Right to Use the CFA Designation. A Covered Person’sright to use the CFA designation is permanently revoked.

(g) Summary Suspension. This sanction automatically removes theCovered Person from membership in AIMR, Member Soci-eties, and Member Chapters and/or suspends the CoveredPerson’s right to use the CFA designation.

(h) Suspension (summary or otherwise) or Prohibition from Participation inthe CFA Program. CoveredPerson is automatically and/or permanently removed fromparticipation in the Candidate Examination Program.

2.4 Notice of Disciplinary Action.All sanctions shall contain a “Notice of Disciplinary Action” thatsummarizes(a) the nature of the matter and the disciplinary proceeding;(b) The applicable code, standard(s), and/or rule(s) that were

violated; and(c) Other appropriate information as determined by the Profes-

sional Conduct Committees subject to the Bylaws and therules.

2.5 Announcement of Sanctions.Sanctions shall be announced in the manner determined by theProfessional Conduct committees pursuant to these rules. Allsanctions shall be promptly communicated to the Covered Per-son. Public sanctions, including Summary Suspension, shall be(a) announced in AIMR Exchange or other AIMR publication(s)

and may include information contained in the Notice ofDisciplinary Action;

(b) Delivered to the Covered Person’s regulator(s), along withinformation listed under Rule 12.2, “Exceptions to Confi-dentiality Policy”; and

(c) Announced to any Member Society or Member Chapter ofwhich the Covered Person is a member. Private Censure andother private sanctions shall be announced in the AIMRExchange or other AIMR publication(s) and may includeinformation contained in the Notice of Disciplinary Action,with the exception of the Covered Person’s name and otherspecifically identifying information.

2.6 Notice.Documents sent to a Covered Person shall be deemed received bythe Covered Person if such documents are mailed postage prepaidto the Covered Person at the last known preferred address shownin AIMR records. The Covered Person is responsible for keepingAIMR advised of his or her current mailing address, as stated inthe Membership Agreement and annual Professional Conduct

Statement.RULE 3: INVESTIGATION3.1 Designated Officer.The Designated Officer, as defined in the Bylaws, may appointdesignees to act on the DesignatedOfficer’s behalf and to assist in performing functions related toprofessional conduct investigations.3.2 Commencement.The Designated Officer or designees (hereafter “DesignatedOfficer”) may conduct an investigation of any matter involving,or appearing to involve, the professional conduct of a CoveredPerson. The Designated Officer is authorized to(a) Request assistance from the Professional Conduct Commit-

tees or subcommittees thereof,(b) Contact regulatory and other professional associations or

advisors to assist in the investigation, and(c) Contact any other party that may be able to provide assis-

tance in the investigation.3.3 Complaining Party.Any person who files a written complaint with AIMR concerninga Covered Person’s professional conduct (hereafter referred to asthe “Complaining Party”) is requested to furnish the DesignatedOfficer with(a) A statement of the circumstances underlying the complaint

and(b) Copies of any supporting documentation that the Com-

plaining. Party believes will assist the Designated Officer indetermining whether the Covered Person has failed to com-ply with the Code and Standards or other governing rules. Theidentity of the Complaining Party will be made known to theCovered Person who is the subject of the complaint unless theComplaining Party specifically requests, in writing to theDesignated Officer, that the source of the complaint remainanonymous. If anonymity is requested, the DesignatedOfficer and other individuals involved in the investigationwill make every reasonable effort to safeguard the identity ofthe Complaining Party, subject to the confidentiality pro-visions in these rules. Efforts to protect the anonymity of aComplaining Party may hamper AIMR’s ability not only toinvestigate a given complaint but to establish that a violationoccurred.

3.4 Notice of Inquiry.The Designated Officer shall furnish a Covered Person who is thesubject of an investigation witha “Notice of Inquiry” and any other information that will reason-ably assist the Covered Person inresponding to the inquiry, including a copy of the Rules ofProcedure, the Articles and Bylaws, the Code and Standards, andnotice of the right to be represented by counsel. The CoveredPerson shall respond in writing within thirty (30) days of receiptof the Notice of Inquiry. Failure to respond to a Notice of Inquiryor any other request to submit information relating to the CoveredPerson’s professional conduct shall constitute grounds for Sum-mary Suspension for “failure to cooperate,” as described in theserules.

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3.5 Communications Regarding Investigation.All communications regarding the Notice of Inquiry and anysubsequent investigation or proceeding, as described in theserules, must be directed to the Designated Officer. Any commu-nications on behalf of the Covered Person, regarding an investi-gation or proceeding, to persons other than the DesignatedOfficer that may affect the integrity of an investigation orproceeding shall result in the matter being automatically re-ferred to the DRC or a subcommittee thereof. The DRC, orsubcommittee thereof, will then assume the responsibility of theDesignated Officer and resume the investigation or proceeding.3.6 Continuation of Proceeding after Resignation.Even if a Covered Person has resigned from AIMR membershipand/or as a holder of the CFA professional designation or hasassumed Postponed Candidate status, a disciplinary proceedingmay continue. Furthermore, if a disciplinary proceeding wascommenced prior to the Covered Person’s resignation or changeof status (as indicated by the Notice of Inquiry date), theDesignated Officer or applicable committee or subcommitteemay impose disciplinary sanctions.RULE 4: ACTION BY THE DESIGNATED OFFICER ANDTHE DRC4.1 Termination of an Investigation.If the Designated Officer determines that evidence is not suffi-cient to proceed with an investigation, he or she shall notify theCovered Person in writing and terminate the investigation, exceptas otherwise provided herein. Termination of an investigationshall not preclude reopening, at a future date, an investigationthat involves the same allegations or conduct, based on additionalevidence.4.2 Private Censure.At the conclusion of an investigation, if the Designated Officerdetermines that the Covered Person has committed a minorviolation of the Code and Standards, the Designated Officer mayimpose a Private Censure on the Covered Person. A Covered Personwho receives a Notice of Private Censure shall have the right toreject the sanction by submitting to the Designated Officer awritten rejection, accompanied by a written explanation, withinthirty (30) days of the receipt of the notice. If the Covered Personrejects the Private Censure, the Designated Officer shall continuethe investigation or refer the matter to a “Hearing Panel,” asdescribed in Rule 5, “Request for Hearing.” If the Covered Personaccepts the Private Censure or fails to reject the Private Censurein writing within thirty (30) days of the receipt of the Notice ofPrivate Censure, the determination of the Designated Officer andthe imposition of the Private Censure shall be final and conclu-sive. In such event, the Covered Person shall be deemed to haveadmitted the violations, accepted the sanction, and waived allrights of appeal.4.3 Stipulation Agreement.At the conclusion of a professional conduct investigation, theDesignated Officer may enter into a“Stipulation Agreement” with the Covered Person to terminate theinvestigation by(a) Public Censure;

(b) Suspension of Membership;(c) Suspension of the Right to Use the CFA Designation;(d) Revocation of Membership; and/or(e) Revocation of the Right to Use the CFA Designation. Prior

to entering into a Stipulation Agreement, the DesignatedOfficer shall inform the Covered Person in writing that if theStipulation Agreement is accepted, the Covered Person shallbe deemed to have waived the right to further review by aHearing Panel or a Review Panel.

4.4 Covered Person Consents to Stipulation Agreement.The Stipulation Agreement shall(a) Be signed by the Covered Person and the Designated Officer;(b) Contain a summary of the facts related to the alleged

misconduct; and(c) State the sanction recommended by the Designated Officer

and agreed to by the Covered Person.The Stipulation Agreement shall be forwarded to the DRC, or asubcommittee thereof, which shall review the Stipulation Agree-ment and impose sanctions, if any. The DRC, or a subcommitteethereof, may(a) Impose the recommended or a lesser sanction;(b) Dismiss the matter; or(c) Reject the Stipulation Agreement and refer the matter back

to the Designated Officer or the DRC Chair for additionalinvestigation and action. Throughout the investigation,every reasonable attempt will be made to negotiate a Stipu-lation Agreement with the Covered Person.

4.5 Covered Person Does Not Consent to Stipulation Agree-ment.If the Covered Person does not explicitly accept or deny theproposed Stipulation Agreement within thirty (30) days afterreceipt by the Covered Person, the Designated Officer will referthe matter to a Hearing Panel. The Hearing Panel shall proceedpursuant to Rule 5, “Request for Hearing.”RULE 5: REQUEST FOR HEARING5.1 Designation of Hearing Panel.A Hearing Panel shall consist of three to five members of theProfessional Conduct Committees or subcommittees, which shallhear the charges and render a decision. One member of theHearing Panel shall serve as Hearing Panel Chair. No memberof the Hearing Panel who indicates a conflict of interest or whohas been previously involved in the investigation of the mattershall serve on the Hearing Panel.5.2 Notice of Hearing and Pre-Hearing Procedures.All Hearings will be held by telephone conference call unless an“In Person Hearing” is requested by the Covered Person, inwriting, addressed to the Designated Officer. The DesignatedOfficer shall schedule a date and time (and place, if the CoveredPerson requests an In-Person Hearing) promptly after receivinga request for Hearing by the Covered Person. If a mutuallyagreeable date and time is not provided by the Covered Person tothe Designated Officer within thirty (30) days, the Hearing PanelChair shall determine the date and time (and place, if appli-cable) for the Hearing and give the Covered Person thirty (30)days notice thereof. The notice shall inform the Covered Person

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of the right(a) to have a reasonable opportunity to be heard in his or her own

defense,(b) to be represented by counsel,(c) to present witnesses and evidence, and(d) to question any witness.The Hearing shall be held within 120 days of the request forHearing by the Covered Person. Once a Hearing has beenscheduled, any requests by the Covered Person to reschedule theHearing shall be submitted in writing to the Hearing Panel Chair.The Hearing Panel Chair shall have sole discretion to grant ordeny the Covered Person’s request to reschedule the Hearing. TheCovered Person may furnish to the Hearing Panel written infor-mation or demonstrative evidence on his or her behalf. Any writteninformation or evidence not received by the Designated Officerat least fourteen (14) days prior to the Hearing shall not beconsidered by the Hearing Panel. The Covered Person shallprovide eight (8) copies of such information or evidence to theDesignated Officer, who shall provide the information to theHearing Panel. At least fourteen (14) days prior to the Hearing,the Covered Person shall also provide the Designated Officer witha list of all witnesses who will testify at the Hearing on the CoveredPerson’s behalf, including the name, address, and telephonenumber of the witness, and a brief description of the expectedtestimony of each witness. The Designated Officer may alsosubmit written material to the Hearing Panel. Such submissionshall be sent to the Hearing Panel, in conjunction with anymaterial submitted by the Covered Person, no later than seven (7)days prior to the Hearing. The Covered Person shall receive a copyof the Designated Officer’s submission to the Hearing Panel.5.3 Hearing Procedures.At the outset of the Hearing, the Hearing Panel Chair shall makea statement detailing the natureand purpose of the Hearing and the procedures by which theHearing shall be governed. The Hearing Panel Chair shalladminister an oath to all witnesses, including the Covered Person,prior to their testimony. The Designated Officer may make astatement and/or present testimony in support of the recom-mended sanction or waive that right and rely on the DesignatedOfficer’s written submission. The Covered Person will also begiven an opportunity to make a statement and/or present testi-mony in his or her defense. The Designated Officer shallhave the opportunity to respond to the statement and/or testi-mony presented by the Covered Person. The Designated Officerand Covered Person will have the opportunity to question wit-nesses presented by either party. Any member of the HearingPanel may ask questions or request further information at anytime during the course of the Hearing Panel. The Hearing Panelshall not be bound by any rules of evidence applicable in courtsof law, and the Hearing Panel may exclude matters that they deemirrelevant. At the conclusion of the Hearing, the Hearing Panelshall deliberate, out of the presence of the Covered Person andDesignated Officer, to make a determination regarding theappropriate sanction, if any. A finding of misconduct shall beestablished by a preponderance of the evidence. An audio or

stenographic recording of the hearing shall be made. The costof the recording shall be paid by AIMR.5.4 Hearing Panel Report and Determination.The Hearing Panel Chair shall prepare a report of the HearingPanel’s findings and determination of sanction, if any. The reportshall include findings of fact related to the alleged misconductof the Covered Person; findings as to the violations, if any, of therules related to professional conduct; or other basis for thesanction. The report and determination shall be delivered to theCovered Person within thirty (30) days after the Hearing. Thesanction, if any, recommended by the Hearing Panel shall beimposed, unless the Covered Person requests a review as describedbelow.5.5 Review of Hearing Panel Determination.If disciplinary action is imposed by the Hearing Panel, theCovered Person may request a review of the Hearing Paneldecision. The recommended sanction shall be imposed unlessthe Review Panel determines that, because of exceptional orunusual circumstances, it would be inequitable to impose thesanction determined by the Hearing Panel. The Covered Personmust submit a written request for review of the Hearing Paneldecision to the Designated Officer within thirty (30) days of thedate of the Hearing Panel decision. A Review Panel shall beappointed to consider the Hearing Panel’s determination. TheReview Panel shall meet by telephone conference call. TheReview Panel shall consist of three to five members from theProfessional Conduct Committees or the Board of Governors. TheReview Panel shall not include any of the members of theProfessional Conduct Committees or Board of Governors whoindicate a conflict of interest or who have been previously involvedin the investigation of the Covered Person’s conduct or theHearing Panel. Within thirty (30) days after the request forreview of the Hearing Panel decision, the Covered Person mayfurnish written material or information pertaining to why it wouldbe inequitable to continue the sanction determined by theHearing Panel because of exceptional or unusual circumstances.The Review Panel may request from the Covered Person, theHearing Panel Chair, and/or the Designated Officer any addi-tional information that the Review Panel reasonably believesnecessary to reach a determination. The Hearing Panel Chair ordesignee shall present the matter to the Review Panel in supportof the Hearing Panel’s determination. Within thirty (30) daysof its review, the Review Panel shall notify the Covered Person ofits determination. The Review Panel’s determination is final andconclusive.RULE 6: CONDUCT DURING THE CFA EXAM ADMIN-ISTRATION PROCESSThe Professional Conduct Committees have the responsibility fordisciplining Covered Persons found to have violated any rules andregulations of the CFA Program, including AIMR’s Articles ofIncorporation, Bylaws, Code of Ethics, and Standards of Profes-sional Conduct (herein “CFA Program Rules and Regulations”)during the CFA Exam Administration Process. The CFA ExamAdministration Process is defined as any activity directly relatedto taking the CFA Examination, from the time the Covered Person

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registers for the CFA Program and/or enrolls for a CFA Exami-nation until the Covered Person receives the right to use the CFACharter. The Designated Officer may conduct an investigationof any matter involving or appearing to involve the conduct of aCovered Person during the CFA Exam Administration Process.Matters involving the CFA Exam Administration Process will begoverned by the procedures set forth in this Rule.6.1 Statement of Charges.Upon notice from an exam proctor or supervisor, Covered Person,or other party that a Covered Person may have violated the CFAProgram Rules and Regulations during the CFA Exam Admin-istration Process, the Designated Officer shall investigate theallegations. The Designated Officer shall provide the CoveredPerson with notice of the investigation. The Covered Person shallrespond in writing within thirty (30) days of the date of the notice.Failure to respond to the notice or any other request for informa-tion related to the Covered Person’s conduct shall constitutegrounds for Summary Suspension for failure to cooperate with aProfessional Conduct investigation. Upon completion of theinvestigation, if the Designated Officer determines that a CoveredPerson has violated the CFA Program Rules and Regulationsduring the CFA Exam Administration Process, the DesignatedOfficer shall furnish the Covered Person with a “Statement ofCharges.” The Statement of Charges shall include the following:(a) A statement of the Covered Person’s conduct that violates the

CFA Program Rules and Regulations.(b) A statement of the recommended sanction.(c) Evidence supporting the finding of conduct.(d) Any other information that, in the determination of the

Designated Officer, will reasonably assist the Covered Per-son in responding to the Statement of Charges, including acopy of the Rules of Procedure, the Articles and Bylaws, theCode of Ethics and Standards of Professional Conduct, andapplicable CFA Program Rule(s) and/or Regulation(s).

6.2 Covered Person’s Response to the Statement of Charges.The Covered Person may provide a response to the Statement ofCharges (herein “Covered Person’s Reply”) either accepting orrejecting the Charges. The Covered Person’s Reply must besubmitted in writing and must be received by the DesignatedOfficer within forty-five (45) days of the date of the Statement ofCharges. If the Covered Person accepts the Statement of Chargesor does not provide a response to the Statement of Charges (eitheraccepting or rejecting the Charges), within forty-five (45) daysof the date of the Statement of Charges, the determination of theDesignated Officer and imposition of the sanction will be finaland conclusive, the investigation will be deemed concluded, andthe Covered Person will have waived the right to further review bya Candidate Conduct Hearing Panel. If the Covered Person doesnot accept the Statement of Charges, the matter will be referredto a Candidate Conduct Hearing Panel. The Covered Person mayrequest, in writing and as part of the Covered Person’s Reply, topresent verbal testimony to the Candidate Conduct HearingPanel.6.3 Candidate Conduct Hearing Panel.The Candidate Conduct Hearing Panel shall consist of three to

five members of the Professional Conduct Committees or sub-committees thereof. One member of the Candidate ConductHearingPanel shall serve as Candidate Conduct Hearing Panel Chair. TheCandidate Conduct Hearing Panel shall not include any mem-bers of the Professional Conduct Committees who indicate aconflict of interest or who have been previously involved in theinvestigation of the Covered Person’s conduct. If the CoveredPerson has made a request to present verbal testimony to theCandidate Conduct Hearing Panel, the Candidate ConductHearing Panel will convene a telephone conference call (herein“Conference Call Review”). The Candidate Conduct HearingPanel shall make a determination based on the evidence ortestimony regarding (a) whether the alleged conduct occurredand, if so, (b) the appropriate sanction for the conduct, if any.6.4 Candidate Conduct Hearing Panel Procedures.The Candidate Conduct Hearing Panel shall be held within sixty(60) days of the Designated Officer’s receipt of the CoveredPerson’s Reply. Prior to the Candidate Conduct Hearing Panel,the Covered Person may submit to the Designated Officer writteninformation or demonstrative evidence on his or her behalf. Forsuch information or evidence to be considered, the DesignatedOfficer must receive it at least fourteen (14) days prior to thescheduled date of the Candidate Conduct Hearing Panel. TheCovered Person shall provide eight (8) copies of such informationor evidence to the Designated Officer, who shall provide theinformation to the Candidate Conduct Hearing Panel. TheDesignated Officer may also submit written material to theCandidate Conduct Hearing Panel. Such submission shall besent to the Candidate Conduct Hearing Panel, in conjunctionwith any material submitted by the Covered Person, no later thanseven (7) days prior to the scheduled date of review by theCandidate Conduct Hearing Panel. The Covered Person shallreceive a copy of the Designated Officer’s submission to theCandidate Conduct Hearing Panel. If the Covered Person hasmade a request to present verbal testimony, the DesignatedOfficer shall schedule a date and time for the Conference CallReview and give the Covered Person twenty-one (21) days noticethereof. The notice shall inform the Covered Person of the right(a) to have a reasonable opportunity to be heard in his or her own

defense,(b) to be represented by counsel,(c) to present witnesses and evidence, and(d) to question witnesses presented by the Designated Officer.If the Covered Person intends to present witnesses at the Confer-ence Call Review, at least fourteen (14) days prior to the Confer-ence Call Review, the Covered Person shall provide the DesignatedOfficer with a list of witnesses who will testify. During theConference Call Review, the Designated Officer may make astatement and/or present testimony in support of the recom-mended sanction or may waive that right and rely on the Desig-nated Officer’s written submission. The Covered Person will alsobe given an opportunity to make a statement and/or presenttestimony in his or her defense. The Designated Officer shall havethe opportunity to respond to the statement and/ or testimony

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presented by the Covered Person. The Designated Officer andCovered Person will have the opportunity to question witnessespresented by either party. Any member of the Candidate ConductHearing Panel may ask questions or request further informationat any time during the course of the Candidate Conduct HearingPanel. At the conclusion of the Conference Call Review, the Panelshall deliberate out of the presence of the Covered Person andDesignated Officer. An audio recording of the Candidate Con-duct Hearing Panel shall be made. The cost of the recording shallbe paid by AIMR. If the Covered Person has not made a requestto present verbal testimony to the Candidate Conduct HearingPanel, the Candidate Conduct Hearing Panel shall meet out ofthe presence of the Covered Person and Designated Officer tomake its determinations. The Candidate Conduct Hearing Panelis not bound by any rules of evidence applicable in courts of lawand may exclude matters deemed irrelevant. A finding ofmisconduct shall be established by a preponderance of theevidence.6.5 Candidate Conduct Hearing Panel Report and Determi-nation.The Candidate Conduct Hearing Panel Chair shall prepare areport on the Candidate Conduct Hearing Panel’s findings anddetermination. The report shall include findings of fact relatedto the alleged misconduct of the Covered Person and findings asto the violations, if any, of the rules related to professionalconduct; the sanction, if any; and the basis for the sanction. Thereport shall be delivered to the Designated Officer and CoveredPerson within thirty (30) days after the conclusion of the Candi-date Conduct Hearing Panel’s deliberations. The sanction, if any,recommended by the Candidate Conduct Hearing Panel shall beimposed unless the Covered Person requests a review as describedbelow.6.6 Review of Candidate Conduct Hearing Panel Determi-nation.If disciplinary action is imposed by the Candidate ConductHearing Panel, the Covered Person may request a review of theCandidate Conduct Hearing Panel decision. The recommendedsanction shall be imposed unless the Review Panel determinesthat, because of exceptional or unusual circumstances, it wouldbe inequitable to impose the sanction determined by the Can-didate Conduct Hearing Panel. The Covered Person must submita written request for review of the Candidate Conduct HearingPanel decision to the Designated Officer within thirty (30) daysof the date of the Candidate Conduct Hearing Panel’s decision.The Covered Person may furnish written material or informationpertaining to why continuing the sanction determined by theCandidate Conduct Hearing Panel would be inequitable be-cause of exceptional or unusual circumstances. The DesignatedOfficer must receive any written information or evidence withinthirty (30) days of the date of the Candidate Conduct HearingPanel decision, to be considered by the Review Panel. The ReviewPanel shall be appointed to consider the Candidate ConductHearing Panel’s decision and shall meet by telephone confer-ence call. The Review Panel shall consist of three to five membersfrom the Professional Conduct Committees or the Board of

Governors and shall not include members of the ProfessionalConduct Committees or Board of Governors who indicate a con-flict of interest or who previously have been involved in theinvestigation of the Covered Person’s conduct or the CandidateConduct Hearing Panel. The Review Panel may request from theCovered Person, the Candidate Conduct Hearing Panel Chair,and/or the Designated Officer any additional information itreasonably believes is necessary to reach a determination. TheCandidate Conduct Hearing Panel Chair or designee shallpresent the matter to the Review Panel in support of the CandidateConduct Hearing Panel’s determination. Within thirty (30) daysof its review, the Review Panel shall notify the Covered Person ofits determination. The Review Panel’s determination is final andconclusive.6.7 Sanctions.Any finding that the Covered Person violated the CFA ProgramRules and Regulations will automatically void the Covered Person’sexam results, if any, for the exam year in which the conductoccurred. In addition, any sanction listed in Section 12.4 of theAIMR Bylaws that the panel believes appropriate may be im-posed. Sanctions shall be announced in the AIMR Candidate Bulletinor other AIMR publication(s).RULE 7: SUMMARY SUSPENSION7.1 Defined.Summary Suspension constitutes removal(a) from membership in AIMR and its affiliate organizations,(b) from membership in Member Societies, and/or Member

Chapters,(c) of the right to use the CFA designation, and/or(d) from participation in the CFA Program.7.2 Grounds for Summary Suspension.The Designated Officer or DRC shall impose a Summary Suspen-sion on a Covered Person if the Covered Person(a) is convicted, pleads guilty, or consents to a crime that is

defined as a felony under the laws of the convicting jurisdic-tion or, if the laws of the convicting jurisdiction do not definefelony, any crime punishable by more than one year in prison(herein “Category A”);

(b) is barred permanently, or for an indefinite period of time,from registration under the securities laws or similar lawsrelating to the investment decision-making process or fromassociation or affiliation with a governmental or judicialagency or by a public or private self-regulatory organizationwith jurisdiction over the investment decision-making pro-cess (herein “Category B”); or

(c) fails to cooperate with AIMR in its investigation of theCovered Person’s conduct (herein ”Category C”).

7.3 Summary Suspension for Conviction or Bar(Categories A and B).If Summary Suspension is based on Categories A and B, theDesignated Officer shall obtain a verified copy of the final rulingin the matter, after which, the Covered Person shall automaticallyreceive a Summary Suspension. The Designated Officer shallnotify the Covered Person of the automatic Summary Suspensionand the Covered Persons right to petition for a review of the

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suspension by a “Summary Suspension Review Panel,” as de-scribed in Rule 8, “Request for Review by Summary SuspensionReview Panel.” If the Covered Person submits a written requestfor review of the Summary Suspension to the Designated Officerwithin thirty (30) days of the notification of Summary Suspen-sion, the Designated Officer shall refer the matter to a SummarySuspension Review Panel as described in Rule 8, “Request forReview by Summary Suspension Review Panel.” After the conclu-sion of the thirty (30) day period, if the Covered Person has notsubmitted a written request for review of the Summary Suspension,the Covered Person may not submit a request for review of theSummary Suspension until one (1) year has elapsed since thedate of Summary Suspension. Furthermore, no additional requestfor review of a Summary Suspension shall be accepted within one(1) year of a denial by the Summary Suspension Review Panel ofa previous request. Summary Suspension shall be announced inthe same or similar manner outlined under Rule 2.5, “Announce-ment of Sanctions.” A Summary Suspension shall automaticallybecome a Revocation of Membership and/or right to use the CFAdesignation if the Covered Person does not petition for review ofthe Summary Suspension within five (5) years from the date ofSummary Suspension. The Summary Suspension shall be termi-nated immediately upon filing with the Designated Officer acertificate demonstrating that the underlying criminal convic-tion or professional suspension has been reversed. The DRC,however, maycontinue its investigation of the matter unabated. If the SummarySuspension has been terminated, a notice thereof may, at thewritten request of the Covered Person, be announced in the sameor similar manner as described in Rule 2.5, “Announcement ofSanctions.”7.4 Summary Suspension for Failure to Cooperate(Category C).If Summary Suspension is based on Category C, the suspensionshall not be imposed until the Covered Person has been furnishedwith a Notice of Summary Suspension. A Covered Person who hasbeen issued a Notice of Summary Suspension shall have the rightto object to the suspension by cooperating with the investigationor by submitting to the Designated Officer a written objection andrequest for review of the Summary Suspension, accompanied bya written explanation within thirty (30) days of the receipt of theNotice. If the Covered Person submits a written request for reviewof the Summary Suspension to the Designated Officer withinthirty (30) days of notification of the Summary Suspension, theDesignated Officer shall refer the matter to a Summary Suspen-sion Review Panel as described in Rule 8, “Request for Review bySummary Suspension Review Panel.” After the conclusion of thethirty (30) day period, if the Covered Person has not submitted awritten request for review of the Summary Suspension, the CoveredPerson may not submit a request for review of the SummarySuspension until one (1) year has elapsed since the date ofSummary Suspension. Furthermore, no additional request forreview of a Summary Suspension shall be accepted within one (1)year of a denial by the Summary Suspension Review Panel of aprevious request. Summary Suspension shall be announced in

the same or similar manner outlined under Rule 2.5, “Announce-ment of Sanctions.” A Summary Suspension shall automaticallybecome a Revocation of Membership and/or right to use the CFAdesignation if the Covered Person does not petition for review ofthe Summary Suspension within five (5) years from the date ofSummary Suspension. If the Summary Suspension has beenterminated, a notice thereof may, at the written request of theCovered Person, be announced in the same or similar manner asdescribed in Rule 2.5, “Announcement of Sanctions.”RULE 8: REQUEST FOR REVIEW BY SUMMARY SUS-PENSION REVIEW PANEL8.1 Designation of Summary Suspension Review Panel.Upon receipt of a request for review of a Summary Suspension, theDesignated Officer shall refer the matter to a Summary Suspen-sion Review Panel, which shall consist of three to five membersfrom the Professional Conduct Committees or subcommittees.One member of the Summary Suspension Review Panel shall serveas Summary Suspension Review Panel Chair. No member whoindicates a conflict of interest or who previously has been involvedin the investigation of the matter shall serve on the SummarySuspension Review Panel.8.2 Preliminary Review Panel Procedures.All proceedings of the Summary Suspension Review Panel shallbe held by telephone conferencecall. After receiving a Covered Person’s petition for review of theSummary Suspension, the Designated Officer shall promptlyschedule a date and time for the proceeding. If the Covered Persondoes not provide a mutually agreeable date and time to theDesignated Officer within thirty (30) days, the Summary Suspen-sion Review Panel Chair shall determine the date and time for theSummary Suspension Review Panel. The Summary SuspensionReview Panel Chair shall give the Covered Person thirty (30) dayswritten notice of the date and time of the proceeding. This noticeshall also inform the Covered Person of the right(a) to have a reasonable opportunity to be heard in his or her own

defense,(b) to be represented by counsel,(c) to present witnesses and evidence, and(d) to question any witness.The Summary Suspension Review Panel shall be held withinninety (90) days of the written petition for review. Once aSummary Suspension Review Panel has been scheduled, anyrequests by the Covered Person to reschedule the SummarySuspension Review Panel shall be submitted, in writing, to theSummary Suspension Review Panel Chair. The Summary Suspen-sion Review Panel Chair shall have sole discretion to grant or denythe Covered Person’s request to reschedule the Review Panelproceeding. The Covered Person may furnish to the SummarySuspension Review Panel written information or demonstrativeevidence on his or her behalf. Any written information or evidencenot received by the Designated Officer at least fourteen (14) daysprior to the proceeding shall not be considered by the SummarySuspension Review Panel. The Covered Person shall provide eight(8) copies of such information or evidence to the DesignatedOfficer, who shall provide the information to the Summary Suspen-

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sion Review Panel. At least fourteen (14) days prior to theproceeding, the Covered Person shall also provide the DesignatedOfficer with a list of all witnesses who will testify at the proceedingon the Covered Person’s behalf, including the name, address,telephone number, and a brief description of the expectedtestimony of each witness. The Designated Officer may alsosubmit written material to the Summary Suspension ReviewPanel. Such submission shall be sent to the Summary SuspensionReview Panel, in conjunction with any material submitted by theCovered Person, no later than seven (7) days prior to the proceed-ing. The Covered Person shall receive a copy of the DesignatedOfficer’s submission to the Summary Suspension Review Panel.8.3 Review Panel Procedures.The Designated Officer may present evidence in support of theSummary Suspension to the Summary Suspension Review Panelor may waive that right and rely on his or her written submission.The Covered Person shall then present any written informationand/or demonstrative evidence in the Covered Person’s defense.The Designated Officer shall have the opportunity to respond tothe evidence and/or statement made by the Covered Person. TheSummary Suspension Review Panel shall not be bound by therules of evidence applicable in courts of law, and the SummarySuspension Review Panel may exclude matters deemed irrel-evant. Any member of the Summary Suspension Review Panel mayask questions or request further information at any time duringthe course of the proceeding. At the conclusion of the SummarySuspension Review Panel proceeding, the Summary SuspensionReview Panel shall deliberate, out of the presence of the CoveredPerson and Designated Officer. The Summary Suspension shallbe terminated if the Summary Suspension Review Panel deter-mines that, because of exceptional or unusual circumstances,continuing the Summary Suspension would be inequitable to theCovered Person.8.4 Summary Suspension Review Panel Report and Deter-mination.The Summary Suspension Review Panel Chair shall prepare areport of the Summary SuspensionReview Panel’s findings and determination. If the SummarySuspension Review Panel determines not to terminate the Sum-mary Suspension, such notification shall contain a statement ofreasons for the decision. The report and determination shall bedelivered to the Covered Person within thirty (30) days of theproceeding. The Summary Suspension Review Panel’s determi-nation is final and conclusive. The fact that a Covered Person hasreceived a Summary Suspension shall not prevent continuation ofan investigation regarding the underlying conduct or the impo-sition of other Sanctions pursuant to the Bylaws and these rules.RULE 9: REINSTATEMENT FOLLOWING SUSPENSIONOF MEMBERSHIP AND/OR RIGHT TO USE CFA DESIG-NATIONA Covered Person who has received a suspension of membershipand/or right to use the CFA Designation, either through Stipu-lation Agreement or determination by Hearing Panel and/orReview Panel, shall be reinstated upon the expiration of theperiod of suspension, provided the Covered Person completes and

files a Professional Conduct Statement with AIMR confirmingthat he or she has not been the subject of any disciplinary actionsince the suspension became effective.RULE 10: REINSTATEMENT FOLLOWING REVOCA-TION10.1 Petition for Reinstatement Following Revocation.A Covered Person whose membership and/or CFA designationhas been revoked may seek reinstatement of the revoked privilegesby submitting a “Petition for Reinstatement” to the DesignatedOfficer. To be eligible to seek an order of reinstatement, theCovered Person must(a) wait at least five (5) years after the effective date of the

Revocation of Membership;(b) demonstrate to the Professional Conduct Committees’ satis-

faction his or her professional competence and fitness topractice financial analysis, which shall include sufficientevidence demonstrating rehabilitation and full compliancewith all disciplinary orders; and

(c) adhere to such other conditions as may be reasonablyrequired by the Professional Conduct Committees, includ-ing the completion and filing of a Professional ConductStatement and passage of a Standards of Practice examina-tion.

10.2 Investigation and Review of the Petition for Reinstate-ment.On receipt of a Petition for Reinstatement, the Designated Officershall promptly conduct an investigation as may be necessary. Thepetitioner shall cooperate in any investigation. The DesignatedOfficer, upon completion of the investigation, shall refer thematter to a Review Panel. The Review Panel shall be conductedin accordance with Rule 8, “Request for Review by SummarySuspension Review Panel.”10.3 Successive Petitions.No petition for reinstatement shall be accepted within two (2)years following a denial of a previous petition for reinstatement.RULE 11: WAIVER OF ALL RIGHTS AND PROCEEDINGSA Covered Person may—at any point in the proceedings prior tofinal action by the Designated Officer, DRC, hearing panel, orreview panel—waive any or all procedures provided herein andtender a “conditional admission of misconduct,” which shallconstitute grounds for discipline. The conditional admissionshall be made in writing and in a form acceptable to theDesignated Officer. The Designated Officer shall submit theCovered Person’s conditional admission of misconduct to theProfessional Conduct Committees, or a sub-committee thereof,for final review and approval.RULE 12: CONFIDENTIALITY OF PROCEEDINGS12.1 Confidentiality Policy.Except as otherwise provided, all proceedings conducted pursu-ant to these rules shall be confidential and the records ofproceedings shall remain confidential and shall not be madepublic.12.2 Exceptions to Confidentiality Policy.The pendency, subject matter, and status of proceedings con-ducted pursuant to these rules may be disclosed if the alleged

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violation is a clear violation of law or regulations or if it caused orhas the potential to cause serious harm to the investment man-agement profession, the financial analysis community, and/orthe general public. Additional exceptions to the confidentialitypolicy include(a) violation predicated on criminal conviction or bar as defined

herein,(b) waiver of confidentiality by the Covered Person, or(c) disclosure as required by legal process of a court of law or

other governmental body or agency having appropriatejurisdiction.

In addition, the Professional Conduct Committees or their des-ignees may provide copies of the following information to theCovered Person’s regulator (s):(a) the Stipulation Agreement;(b) the Notice of Disciplinary Action;(c) decisions of the Hearing Panel and/or Review Panel;(d) information determined by the Designated Officer to be

publicly available;(e) information obtained by AIMR prior to the Covered Person’s

disclosure of such information to AIMR;(f) information that AIMR received from sources other than the

Covered Person, provided that AIMR does not breach anobligation of confidentiality owed by AIMR;

(g) information received by AIMR from the Covered Personwithout restrictions on its disclosure; and

(h) such additional information of the type and scope that thereceiving regulator is legally permitted to keep confidential(e.g., exempt from the “Freedom of Information Act” disclo-sure requirements).

The Designated Officer may seek confirmation from the Profes-sional Conduct Committees, or their designated committee orsubcommittee representative, as deemed necessary regardingthe above noted exceptions.RULE 13: RECORDSA record of all investigations, appeals, hearings, recommenda-tions, determinations, and actions in all matters involving aCovered Person’s conduct shall be preserved for six (6) years, twoof which shall be in a readily accessible location.

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Bylaws & Membership Roster

In an effort to enhance our services in a cost effective manner weare making your membership roster and Bylaws available via theInternet from our website, under the members only section.

Please go to www.lasfa.org, click on members only, enter yourindividual login and password. If you do not have a password or donot know your password please send an e-mail to [email protected] password in the subject line, in your e-mail, please includeyour first name, last name and your AIMR membership number.You will be sent an e-mail with information on how to access themembers only section of our website. Once you are logged into ourwebsite you will have several choices, one being: Download themost current membership roster. Please keep in mind that ourwebsite and AIMR's website are separate and therefore will nothave the same access codes.

If you do not have Internet access, please contact theadministrative office at (213) 627-1500.