Can someone summarize what/when/why/how you need to disclose? Paid for serving on a school board or directors $5,000 a year A PM who runs an ebay business An analyst that is moonlighting as a bartender A PM who owns 1/3 of a family manufacturing business A member who recieves free membership to the zoo for serving on the investment advisory committe
material compensation is key and as long as it does not conflict with the FT employer. 1. Yes 2. No 3. No 4. Yes 5. Yes
sweet
Why is this material? A member who recieves free membership to the zoo for serving on the investment advisory committee
You also have to consider if the compensation competes with the employer for the employee’s time and attention. Given only the information provided, I’d agree with CPierce. But, if they said the bartending job causes our CFA member to be sleepy at work the next day, then it reasonably is competing for the full use of the member’s skills. Same goes for EBAY. If this guy is checking his account at work, or staying up all night working on his business, it changes things.
Conflict of interest!
The member shouldn’t use any of the “perks” that come with the new role (even if its a free zoo membership) until its disclosed.
1morelevel Wrote: ------------------------------------------------------- > Why is this material? > > A member who recieves free membership to the zoo > for serving on the investment advisory committee Key here is the investment committee, not the zoo.
^ you know thats not what counts…
I hate ethics.
Paid for serving on a school board or directors $5,000 a year *I assume this would fall under “additional compensation”. I don’t see how this can be reasonable assumed to conflict with the interest of the employer. The employer is not in the business of school oversight. The only situation I can see is if they employer is a public finance underwriter which was not stated. *In terms of duties to employer, there is no indication that the time commitment would conflict with the employer A PM who runs an ebay business *I agree, nothing says this should be disclosed. An analyst that is moonlighting as a bartender *As you said, unless there is reason to believe it will interfere with workplace performance no need to disclose. A PM who owns 1/3 of a family manufacturing business *If passively owned, why must he disclose? No conflict of interest and no conflcit of duty to employer A member who recieves free membership to the zoo for serving on the investment advisory committe *I guess the rationale is that he works for a financial services firm and that could impair his ability to make objective decisions for the zoo?
I see the school board as material compensation. Remember the case study in the mock exam where the guy was refing soccer games for $50 a pop? CFAI guideline answers said $50 a game was not material and didn’t need to be disclosed, but I see $5000 USD as material amount. The PM that owns 1/3 of the family business I see in the same light.
CPierce Wrote: ------------------------------------------------------- > I see the school board as material compensation. > Remember the case study in the mock exam where the > guy was refing soccer games for $50 a pop? CFAI > guideline answers said $50 a game was not material > and didn’t need to be disclosed, but I see $5000 > USD as material amount. > > The PM that owns 1/3 of the family business I see > in the same light. But wasn’t there a practice question that said he wouldn’t have to disclose the ownership of a rental property because of no conflict of interest? Wouldn’t that fall in the realm of material?