CFA member works for a company, but plans to manage portfolio of several family members, in exchange for a percentage of the portfolio’s profits. These portfolios require substantial attention, and thus require the CFA member’s services outside of the company he works for. CFA member notifies his employer in writing of his prospective outside employment. Two weeks later, the member begins the manage the family portfolios.
I get how the additional compensation arrangments would be a violation (since he did not recieve official consent from his employer or all the parties involved). However, I do not get how conflict of interest would be violated, especially since its done outside of employment with the company. It does not mention anywhere that the conflict of interest would come in direct violation with the company.
Could anyone explain where the conflict of interest would be in this situation?