Question #16
Reading: Reading 43 Application of the Code and Standards Level II
PDF File: Reading 43 Application of the Code and Standards Level II.pdf
Page: 10
Status: Correct
Correct Answer: A
Question
Jim Jones is an equity research analyst at Gamma funds. Because of his expertise in the telecommunications field, a Chinese telecommunications provider hires Jones as a consultant to help them identify potential investors. According to the Standards of Professional Conduct IV(
Answer Choices:
A. describe to his employer in detail the activities related to this consulting arrangement
B. obtain verbal permission from his employer to engage in this consulting arrangement
C. refuse this consulting arrangement
Explanation
According to the Standards of Professional Conduct, Jones must disclose to his employer
all outside compensation arrangements, describe to his employer in detail the activities
that give rise to outside compensation, and obtain written permission from his employer
in advance.