Ethics - additional compensation

CFA Level III Ethics
#1

If you get extra commission from your emplyer, for selling the firm’s products, do you have to disclose this to clients - or is this relationship assumed from clients and no disclosure is required?

I believe that no disclosure is required but then I saw a question (not from CFA) that listed an example of a firm having a contest to see which advisor can sell the most products, with the winner being awarded $100K - it said that disclosure was required (this could impair independence and objectivity, etc.)

Why would the standard require no disclosure, but the contest listed above would require disclosure?

#2

My guess - because the contest ignores suitability for clients’ portfolio.

If you get extra commission from your emplyer, for selling the firm’s products, you are still putting client first and evaluatiing the products for suitability for the client and their portfolio.

If you participate in a contest to see which advisor can sell the most products, you are potentially introducing unwanted churn in clients’ portfolios.

#3

U would think that by l3, this is embedded in memory.