Say I’m a research analyst and I’d like to get a part time job at Burger King flipping burgers for 2 hours every other day. Do I have to tell my employer?
Absolutely, as it could effect your ability to function in your day job and deprive your employer of your skills and attention, even though it has nothing to do with investing.
no unless the time are same.
not because of the type of job, but if 2 hours away from your job every other day will have a significant negative impact on your ability to complete your job duties, then I would say yes, you need to inform your employer for that reason.
What if he covers Burger King? What then?
I don’t believe so. No competition with their business. If it was 6hrs every night, you would be violating your loyalty to your employer by potentially being overtired for work.
mcf Wrote: ------------------------------------------------------- > Absolutely, as it could effect your ability to > function in your day job and deprive your employer > of your skills and attention, even though it has > nothing to do with investing. This isn’t quite right. That would violate your loyalty to your employer, but it does not fall under additional compensation arrangements that conflict with your main employer’s business, so no disclosure is necessary imo. There’s a Schweser Book 6 question like this.
the issue to me is not additional compensation. its simply time spent away from your job. cube assumes its not going to really impact the workers job, but if the worker leaves from 2-4 during market close and this has a significantly negative impact on your work, you have a duty to inform your employer. if the 2 hours does not impact the persons ability to do their job, you are right cube imho.
SkipE99 Wrote: ------------------------------------------------------- > the issue to me is not additional compensation. > its simply time spent away from your job. cube > assumes its not going to really impact the workers > job, but if the worker leaves from 2-4 during > market close and this has a significantly negative > impact on your work, you have a duty to inform > your employer. > > if the 2 hours does not impact the persons ability > to do their job, you are right cube imho. Agreed. Schweser Book 6 Exam 3 AM, question 1 references this. The person was working 30hrs a week waitressing, which would have been a Loyalty to Employer violation. If they want to test this concept, they will make it obvious. I don’t think 2hrs every other night would be material, but 30hrs a week (6hrs/weeknight) would be.
you can flip burger as long as you receive permission from you current employer.
crazyqqq Wrote: ------------------------------------------------------- > you can flip burger as long as you receive > permission from you current employer. No - read the thread so you have this right on exam day.
Ok. Basically, if it a) might be in conflict with my duties to my employer or b) might make me less effective at performing my duties to my employer I need to get permission. Otherwise I don’t?
Yes. It can be a sensitive issue. I work for a large IB firm and recently the code of conduct highlighted this issue – that any (ANY) outside work was not allowed.
Almost. If ANY additional compensation is from a job or activity that competes or conflicts with your employer’s in any way, you have to disclose it. If not, all else equal, you don’t have to. If you have a job that doesn’t compete with your employer but may deprive them of your ability by making you overtired, for example, you are in violation of IV(A) Loyalty to Employers. Whether you have to disclose it or not, I haven’t found a good answer to that. I don’t think it’ll be tested.
MCF your firm’s policy is not necessarily the CFA’s code. YOU should follow your firm’s policy because it’s more strict, but if being tested on CFA code you would not need to disclose it. IV(B): No gifts, benefits, compensation, or consideration are to be accepted which may create a conflict of interest with the employer’s interest unless written consent is received from all parties. There are tons of questions on this in the qbank. Do them and see what you find.