redskins44

CFA_chap, which standard is violated, IV b or IV a?

smuggycfa

@ftwcfa

You would still have to disclose a job like bartending on the side, even if it's non finance related. The time-consuming activities might detract from your ability to fulfill your responsibilities with your current employer. This judgement call is made by the employer not the employee, thus it would be pertinent to disclose & get permission before accepting job. If you worked for JPM would they want you showing up on Monday morning running off 3 hours sleep because you had to close the bar on Sunday? No. You would certainly be depriving your employer of your skills and abilities because you wouldn't be able to preform them at an adequate level.

See: pg 97 Example 9 Where Alfonso Mota is an Analyst and also serves as part-time Town Mayor (w/ compensation).

Swanand

@mbozicco - I remember that question. There is a nuance there. Good call.

ayaz_mahmud369

mbolzicco Wrote:
-------------------------------------------------------
> @ftwcfa
>
> See: pg 97 Example 9 Where Alfonso Mota is an
> Analyst and also serves as part-time Town Mayor
> (w/ compensation).


mbolzicco, the point was made that this side job would not conflict, as far as time goes, with your current job.

Therefore, if you do have a bartending job (or sell fire trucks, etc.) and work a reasonable amount of time that does not hinder your ability to perform your "real" job, do you have to disclose the job & the compensation to your employer?

bingbingliang

If thats the case, my take is based on example 9 pg 97.

The way the answer is worded makes me believe that if the job were not time commitment heavy, then he would not have to disclose - even given the fact there is compensation involved (because its not competing & not reasonably expected to create a conflict of interest).

flip a few pages to p. 100 and look at Example 2 now where it tests Additional Compensation Arrangements. Here the analyst sits on the board of Exercise, is compensated (non-monetary in this case) and the analyst buys the Exercise stock for clients for whom its appropriate. This is where you have to disclose the compensation arrangement before you take the position to sit on Exercise board because its reasonably expected to create a conflict of interest. Where the analyst screws up is by not disclosing.

side note - I would hate to loose my CFA charter one day because I didn't disclose my gym membership!



Edited 1 time(s). Last edit at Monday, May 30, 2011 at 07:19PM by mbolzicco.

chandsingh

Good feedback guys. This is helpful, and I realize I'm not alone in my confusion.

busterbluth

These are very tricky, subtle points. Level 2 ethics is clearly no joke.

WarrenB1

I'm only slightly joking here, but according to the standards, we should have to disclose to our employers that we're enrolled in the CFA program. It clearly is time consuming and I am certainly depriving my employer of my "abilities" when I a) am up all-night trying to fit every nuance of every LOS into my head, b) can't seem to focus on anything job-related during the month of May, or c) go off on my co-workers for little things because stress levels are at an all-time high.

The last one may not be time consuming but I'm sure that I have tested standard I (D) Misconduct quite a bit.

wilslm

Anyone know for certain if there are violations with these three scenarios?

brainsX

Check out review question 40 on page 162 (answered on page 179). While not directly on point, it doe seem to come close to one of these fact patterns.

The very last sentence of the answer is a bit of a mystery to me (having to do with the fact that find raising already began).