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.