Ethics book 6 Exam 3 PM

I just finished my last exam on Book 6 schweser. I am planning on revising concepts and questions and giving only CFA mock exams in the remaining time. Can some one please help me with Q1 and Q8, Exam 3 PM ?

Hey thunder, dont have my book 6 on me, can you by any chance post he Q’s?

I was lazy to type it in, but here is the Q: Roger Bake, CFA is FI Portfolio manager for a medium sized firm and has been asked to serve on the board of directors for cold delight, inc, a national chain of ice cream shops. Baker personally owns stock in cold delight, but the firm has no debt securities outstanding. Baker’s former college roommate is the CEO of the company. As a member of the board of directors, baker would attend four meetings each year and receive $15000 a year in director’s fee, and he and his immediate family will also receive a 50% discount in all cold delight stores. According to standard IV(B) additional compensation arrangements, baker A Must provide written disclosure and obtain written permission from his employer before accepting the position and its benefits B Must provide written disclosure and receive permission from his employer, but it need not to be written C may accept position without perission but must disclose the duties of the position and compensation to his employer D does not need to disclose the offer or receive permission

A. Additional Compensation/Potential Competition.

I agree with KJH…A

I say B, I remember reading the employer premission can be recieved via email

getterdone Wrote: ------------------------------------------------------- > I say B, > > I remember reading the employer premission can be > recieved via email Email is mutually exclusive with written.

B

A

A?

A

I took the exam and I know the right answer given is D. Confused me too. I scored around 66%. Time constraint is killing me. Looks like my chance of clearing the exam is 50-50.

50-50 is a good chance, but if you stopped studying your chances would be 50-50 cuz i am hoping you can eliminate 2 choices in most answers.

I guess b/c he works in FI and there is not chance to cover the company? What if they eventually issued bonds? Sketchy, in real life at least.

Bad question.

It’s D. Why should he disclose this to his employer? There is no a conflict as the company he works at it is not a competitor to the company he serves on the board of directors.

Correct ans is D and its a bad question. Amber you are correct that there is no direct conflict as company has no bonds outstanding, but still it’s very hard to digest answer

That is a pretty hefty job to take on and could cause potential conflicts in the future with his current employer. Especially if the company issues debt. Just thinking IRL, that sounds shady if you don’t let your employer know about something that big.

gabrielamdea Wrote: ------------------------------------------------------- > It’s D. Why should he disclose this to his > employer? There is no a conflict as the company he > works at it is not a competitor to the company he > serves on the board of directors. In most cases if you serve on a board, it must be disclosed to your employer. This is the first example that I have seen otherwise.