CFAI reading 2, page 128, example 5, conflict of interest

Firm changed compensation policy, to more S/T oriented and causing one employee to engage in placing high beta stocks in a pension portfolio…Example is violation for failing to disclose of conflict of interest/compensation arrangement. he/she should have disclosed that to client? are you serious? I can see suitibility or due diligence could be an issue here but to disclose compensation change to client? give me a break. isn’t that professionalism is all about? to be able to carry out proper work regardless? what if my spouse suffered a huge gambling loss and hence my personal financial condition changed dramatically and cause me to be more converstive in managing the portfolio so I can keep my job longer? Do i have to inform that to client too? my lovely pet goldfish died causing emotional distress? inlaws in town, bad weekend, hangovers?..what if my real estate investment sank? where does it stop?

Nobody? I know it’s ethics case but i really thought the required disclosure is out of line.