Whose permission for Additional Compensation?

CFA Level II
#1

Members must not accept gitfts, benefits…unless they obtain written consent from ALL PARTIES INVOLVED? Who are th all parties? (Certainly it includes the employer, but … Specifically, do I need the WRITTEN PERMISSION OF THE CLIENT/PROSPECT TOO?

#2

a client can be considered like an employer doesn’t apply to prospects. someone verify?

#3

Are you sure you aren’t talking relative to working for someone else? Then you need permission from both employers. I can’t imagine calling up a client and asking them to write down permission to accept the kid.

#4

CFAHouston Wrote: ------------------------------------------------------- > Are you sure you aren’t talking relative to > working for someone else? Then you need permission > from both employers. I can’t imagine calling up a > client and asking them to write down permission to > accept the kid. ah who knows. someone verify that he needs permission to accept the kid

#5

Since this is under Standard IV (duties to employers) I think Additional Compensation Arrangements is clear in that, it is only responsibility to “employers” that need to be considered… you could have multiple employers who you have to disclose to (and get approval from) in writing but you don’t have to worry about clients of your employer as such. However, standard VI(a) - Disclosure of Conflicts - is where I’m not so sure. We have to disclose to clients as well here (not neccesarily in writing, I believe), but I’m not sure to what extent client A giving me an all-expense paid vacation for creating alpha for his portfolio needs to be communicated with client B, whose portfolio I manage, or to prospective client C. Of course, we can also assume that the situation above never arises if we are compliant with I(b) Independence and Objectivity. I’m starting to feel more and more like a fly stuck in the web of CFA ethics…

#6

you are not alone but let’s keep hope alive … the referee’s whistle is not gone yet… many a tough footbal match has been won within the dying minutes of the game with a few moments of brilliance in the dying minutes to top over 85 mins of harwork… we shall overcome…