Jane Grant, CFA is a fund manager at Global Assets LLC and currently manages a fund which focuses on the pharmaceutical industry. Outside of work, Jane designs clothes for a few close friends for a nominal fee. She does not disclose this outside business activity to her employer or clients.
- Which of the following statements is most likely accurate regarding Jane’s actions in relation to her business activity outside of work? Jane is:
A. Not obligated to disclose these outside business activities because they do not present a conflict of interest.
B. In violation of the Code and Standards for not disclosing her outside business activities to her employer.
C. In violation of the Code and Standards by including high risk investments in the fund portfolio assets.
Correct Answer:A
Since her business activity of designing clothes is not related to her investing activities at Global Assets, it does not pose any conflict of interest. Hence, such a business activity need not be disclosed to her employer and clients
I feel answer is B because by not disclosing it he violates duties to employer.What do you all say about this ?