Hey guys, I was doing ethics and I came across 2 different examples. I wanted to clarify something: I.e If Sam was working Firm A and he is also in the volunteer committee for his sons Hockey Team. Now since Sam is an analyst in Firm A, they ( the committee) ask him for advice and in return he doesn’t have to pay for membership. So Sol’n is he tells him employer about this compensation. Now another example, If Sam who works for Firm A and now hes doing a side business and he receives monetary compensation. So the Sol’n is he gets written consent from both parties. My question is doesn’t he have to get a written consent from both parties in Example A as well.
I would answer that as follows: Since advsing the hockey team would not result in its Independence and objectivivty being questioned from firm A, it is generally NOT necessary to have a written consent… Also, advising how to play hockey does not in a way influence the firm A, but it would influence in the case of Question 2
The first is providing advice and must be disclosed as additional comp, just like a client offering additional comp for improved performance. It is additional comp for performance in line with his current duties. The second is a side business and disclosure is to both sides since both are affected and potential conflicts arising from the comp must be disclosed