08CMV4-Q18 Angus Draper, CFA, is a senior portfolio manager and member of the investment committee at Tillahook Investments. Draper serves as a board member for several non-profit organizations. These commitments require eight workdays per month of Draper’s time. Because he does not receive any form of compensation for these activities, Draper does not tell anyone at work about his board activities. Does Draper violate any CFA Institute Standards? A. No. B. Yes, with respect to conflict of interest. C. Yes, with respect to additional compensation. D. Yes, with respect to responsibilities of supervisors. ---------------------------------------------------- my answer: B standard IV(A) loyalty. Member must act for the benefit of their employer. The time commitment may preclude performing Draper’s job functions well. Standard VI(A) disclosure of conflicts. Members must disclose to clients, prospects, and employers all actual and potential conflicts of interest in order to protect investors and employers. board member is a potential conflict for Draper’s clients, prospects, and employers.
Agreed. Is there a question about the answer here?
Well…B seems correct. Is that the actual answer?
Answer should be C. Being a non-profit organization does not mean they don’t pay him. B) What conflict of interest? Those non-profit organizations are not creating any conflict of interest that I can see.
Dreary Wrote: ------------------------------------------------------- > Answer should be C. Being a non-profit > organization does not mean they don’t pay him. > > B) What conflict of interest? Those non-profit > organizations are not creating any conflict of > interest that I can see. Dreary, the statement says that “[Angus] does not receive ANY form of compensation for these activities” meaning monetary or non-monetary. The key here is that the position REQUIRES “eight workdays per month of Draper’s time”… so either the guy gets 90 days or vacation a year from his current employer and he is such a nice guy he’ll use all of it for charity (non-profit board work)… or more likely he would be doing board work during his normal working hours therefore posing a conflict of interest with his duties to his employer…
Yes, you’re right, I didn’t read carefully. However, I remember reading something that even if you don’t get paid, you are taking time from your employer’s time, but none of the options given question that, so I’m lost!