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Basic Question 2 of 3
In order for the member to comply with this standard, the member is required to disclose additional compensation to his ______.
B. employer and clients
C. employer
A. clients
B. employer and clients
C. employer
User Contributed Comments 7
| User | Comment |
|---|---|
| stupie | just the employer - not the clients? |
| SueLiu | It specifically refers to this standard IV.B |
| Farina | Compliance with standards sets a (high) bare minimum requirement. Standard IV.B. requires employers to be informed and to give written consent to, additional compensation arrangements for a CFA Charterholder to be fully compliant. This does not mean it's a bad idea to let your clients know (providing doing so doesn't violate client confidentiality), but this is just good manners. |
| cong | The client already knows because he or she is offering the additional compensation! |
| nayagan | I think the question implies that the client is making the additional comp. However, if the member has multiple clients and one of those said clients is offering additional comp, I would think that the answer is both? |
| johntan1979 | No need to inform clients! If one client gets to know how much more you are getting paid or rewarded by another client, they might vomit blood or get the perception of preferential treatment. |
| gill15 | Usually you do need to inform clients of additional compensation -- Think III --Loyalty,prudence and care...or think issuer paid research...anything that affects objectivity due to compensation needs to be disclosed BUT for this Standard to the Employer --- Does NOT pertain |
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Learning Outcome Statements
demonstrate the application of the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity
recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct
identify conduct that conforms to the Code and Standards and conduct that violates the Code and Standards
CFA® 2025 Level I Curriculum, Volume 6, Module 3.