Here’s a summarized question that I stumbled across,
John Smith, CFA, manages a small investment account for a local not-for-profit, Doe’s Charity. John manages the account during the weekends when he’s not managing portfolios for his employer. His employer is not aware of the arrangement. Is john most likely violating the Standards?
A) Yes, because he is competing with his employer B) Yes, because he has not received permission C) No, if he is not compensated for his work
I chose B, because he hasn’t received permission from his employer, however, the answer turns out to be C.
Is the answer C, only because its charity? What if its another firm where he’s being paid for this time, would the answer become B?
How about if John receives a tax-credit for his time; is a tax-credit considered compensation? what would the answer be then?