Marc Feldman, CFA, is manager of corporate investor relations for a high-tech startup, zippy.com, in Boise, Idaho. Feldman is well-known in the high tech community in Boise, and Dragon.com has asked if he will help them organize their investor relations function on a consulting basis. They offer him an all-expenses-paid two-week holiday for two on Australia’s Gold Coast in payment. Regarding this offer as a CFA Institute member Feldman is: A) allowed to accept the offer only with written approval from zippy and from Dragon. B) allowed to accept the offer only with written approval from zippy. C) not allowed to accept such an offer since it effectively places him in competition with his employer. D) not allowed to accept such an offer since the compensation is non-cash and, therefore, is hard to quantify for the purpose of adhering to the Code and Standards.
Even I thought that answers was B, but it’s A.
Everything I have seen like this says that he may accept the offer as long as he discloses the position to his current employer and obtains written consent from zippy. I would say that the answer is B.
Under Standard IV(A) Loyalty to Employer, and Standard V(B) Additional Compensation Arrangements, Feldman is allowed to accept the offer, but only with written permission from both zippy and Dragon. Feldman only had to take a written permission from the zippy.com and disclose facts to the dragon.com; I do not think Feldman require to take written permission from the dragon. However, when I read write up on the additional compensation it says that written consent from all parties involved is required.
Yep, that’s what it says…and I did stop at that when I read it in Ethics. How do you get a written permission from Dragon? They asked you to do some job for them, so you go and ask them to give you permission to work for them? They’ll slap you silly before you know it.
so what is the consensus on these questions…does “all parties involved” constitute the need to get a written document from both firms or just your own. I feel like I have seen more questions regarding getting a letter from the employers current firm only.
More I read this question more I get confuse, is it a situation in which a person is going in for two jobs? That means that Feldman would have two employers. In this case, written permission seems to be relevant.
Anything involving working for another individual in the same field in which you work for your employer requires approval from both parties.
mcf…Thats a good explanation. For the same reason, I was also thinking A as the answer.
i thought the answer was C. Why not C?
AudreyMwala Wrote: ------------------------------------------------------- > i thought the answer was C. Why not C? We have no idea whether they really are competing companies. Btwn A and B. Seems odd that hed have to get written permission from the company that offered it to him. Owell.