Ethics: board memberships receives, involved, his, management

noel

1 John is a portfolio manager for a wealth management firm and becomesa board member of a local charity. No compensation is involved and the hours don't impede his work.

Does he have an obligation to disclose this relationship to his employer under standard IV?

2 Same basic facts, but now he is a board member of a small company and receives nominal compensation. The company is not publicly traded and is in no way related to the work he does for his employer.

Again, does he have to disclose under IV or VI?

onelife1

In 1, he doesn't have to disclose.

2, must disclose due to compensation

....I think

tobeornottobe

Remember the service to the small company doesnt compete with his work at the IA firm.

I'm trying to figure our if directorships, per se have to be disclosed.

Another scenario: same situation as #1 (charity), only now they asked you to volunteer you skills to make recommendations on portfolio allocation. Again, it doesn't take much time, but you are rendering free advice within your profession.

ninja1024

If it doesn't take much of your time, doesn't conflict or compete, and you aren't compensated, then I don't think you have to disclose it to anyone.

Again, I could be wrong but this is my understanding.

luda002

And if you're compensated?

kkn006

Guys - if you are volunteering on a board for a local charity and asked to help manage their fund, then you are in conflict because your employer is paying you to be a fund manager and your also advising someone else on the side. This puts you in a conflict because you may advise them on a buy before you advise your clients or make the same purchase yourself.

chandsingh

@ thegooddocta - anything finance related would be in conflict w/ your current job.

What you wouldn't have to disclose is if you ran an ebay business, or were bartending on the side.

wxs1986

My guess is that we're in the clear provided that the service doesn't compete with or deprive the employer of any benefit.

Of course, like to be certain of this.

stalkey

Good point, but suppose front running not a risk. Perhaps you're just consulting on mutual funds.

I know the exam is going to ask some very fine line questions of this nature.



CFA_Chap Wrote:
-------------------------------------------------------
> Guys - if you are volunteering on a board for a
> local charity and asked to help manage their fund,
> then you are in conflict because your employer is
> paying you to be a fund manager and your also
> advising someone else on the side. This puts you
> in a conflict because you may advise them on a buy
> before you advise your clients or make the same
> purchase yourself.

yospaghetti

ftwcfa Wrote:
-------------------------------------------------------
> @ thegooddocta - anything finance related would be
> in conflict w/ your current job.
>
> What you wouldn't have to disclose is if you ran
> an ebay business, or were bartending on the side.


Finance related is what you have to watch out for. They are not going to go so far as saying fixed vs euro equities.