saw these while reading… a member prepares to leave his employer and open his own firm by registering with the SEC, renting an office and buying office equipment. a member is a full-time employee of an investment management firm and wants to accept a paid position as a town mayor without asking his employer’s permission. ok/NOT ok??? optional: which standard??? (and may not even be a violation)… thanks in advance for any responses!!
it is ok as long as it is done on his own time and not interfere with his work.
2nd Q is a violation.
westbruin Wrote: ------------------------------------------------------- > saw these while reading… > > a member prepares to leave his employer and open > his own firm by registering with the SEC, renting > an office and buying office equipment. I think preparing to leave is ok if he does everything on his own time and doesn’t deprive his employer of his skills. > > a member is a full-time employee of an investment > management firm and wants to accept a paid > position as a town mayor without asking his > employer’s permission. > In this case he must disclose the arrangement with his employer or he is in violation of the standards. I think it is additional comp. > ok/NOT ok??? optional: which standard??? (and may > not even be a violation)… > > thanks in advance for any responses!!
Not Ok, So long as he is still with the employer he needs to ask permission as his duties as a Mayer might conflict with his time to do his job properly at the firm. The time it takes to run a city would be more than a full time job and so will most likely cause him to be inefficient at his job with investment management firm.
^^ agree with mwvt. except for the second one I’m not sure if it’s a violation - you are supposed to disclose all compensation from other positions if they are conflicting with your current position (in the same line of work)…being a town mayor does not affect his independence and objectivity and might not create a direct conflict of interest with his current duties…so may not be a violation - would need more details…
^^ ok…see n.van added a crucial point…agree with him too 
if it does take up that much of his time - it would be a violation…
basically schweser says both are fine… setting up rival firm IF doesn’t take up too much or non-work time and no solicitation (basically fine if he’s only setting up firm) second one ok if being mayor doesn’t take up too much time… both answers absolutely floor me from a real-world perspective, but hey i’m just trying to get 84 if 120 questions correct, right??? EDIT: and actually second one (mayor) shocks me by pretty much any reasonable criteria. imagine if you’re X bank president and find out your employee is mayor of a town with a major embezzlement scandal. shouldn’t bank president have known of mayor position before he reads about it in the newspaper.
*group hug*
How was the second question phrased?
mwvt9 Wrote: ------------------------------------------------------- > How was the second question phrased? my passages are exact quotes, not “readers digest” version, as they weren’t too long
"second one ok if being mayor doesn’t take up too much time… " I don’t know…Job as a mayor would be quite time consuming if you ask me!!!
N.VanCandidate Wrote: ------------------------------------------------------- > "second one ok if being mayor doesn’t take up too > much time… " > > I don’t know…Job as a mayor would be quite time > consuming if you ask me!!! as i said, these questions just seem to blow my mind on common sense front.