Ethics - Outside Business Activities Confusion

This has confused me for all 3 levels because CFAI is intentionally vague in the section. My understanding is as follows:

If you will be in competition or it could be a conflict of interest, you need written consent prior to accepting

If it takes up substantial time , but no compensation, you need to disclose

Is this correct? It seems like the go back and forth and it drives me insane. Example 2 pg 100 says Jones violated the standard by failing to disclose his services when he receives nonmonetary compensation… does he not need written permission bc it is not in competition? Some clarity would be much appreciated.

don’t undertand why you’re bringing up competition in this question . It only talks about compensation . Jones is very naive , sort of like a teenager , because he says " I need not report this compensation, because it is not monetary " . As if someone said that the only compensation you can receive is monetary and anything else is not compensation at all. Whoever told him this should be lined up against a wall and shot in CFA land. If no one told him this , Jones should be lined up against a wall and shot .

I assume all the confusion however is in your own head and you are mixing this q with another unresolved one whichh actually deals with competition . Are you confusing competition for Jones time with competition as in competing for the health organization’s business ? Exactly what do you think the word competition means w.r.t this q , when the word itself doesn’t occur anywhere in it?

Shooting Jones is a violation of Standard I (D) Misconduct.

Thanks. CFA land sounds a little harsh with the executions haha.

I wasn’t solely referring to this question. I am looking for an overall guideline for when written permission is needed vs disclosure or nothing at all. I know this depends on competition, compensation, and the amount of time you will be spending, but I can’t seem to find any clear lines that distinguish when to do what.

Can anyone else offer any advice?

Here’s my understanding of it. If the compensation is contingent on future performance, you need permission. If you already performed and received a gift for doing well, you need to disclose (but don’t require permission).

The conflict comes from trying to outperform for select accounts (those that provide additional compensation) vs the accounts that don’t. All accounts must be treated equally, fairly, yada yada yada…