Question #7
Reading: Reading 42.4 Standards of Professional Conduct Guidance for Standards IV
PDF File: Reading 42.4 Standards of Professional Conduct Guidance for Standards IV.pdf
Page: 3
Status: Incorrect
Correct Answer: B
Your Answer: C
Question
Marc Feldman, CFA, is manager of corporate investor relations for a high-tech startup, zippy.com, in Boise, Idaho. Feldman is well-known in the high tech community in Boise, and Dragon.com has asked if he will help them organize their investor relations function on a consulting basis. They offer him an all-expenses-paid two-week holiday for two on Australia's Gold Coast in payment. Regarding this offer as a CFA Institute member Feldman is:
Answer Choices:
A. not allowed to accept such an offer since it effectively places him in competition with his employer
B. allowed to accept the offer only with written approval from zippy and from Dragon
C. allowed to accept the offer only with written approval from zippy
Explanation
Under Standard IV(A) Loyalty to Employer, and Standard IV(B) Additional Compensation
Arrangements, Feldman is allowed to accept the offer, but only with written permission
from both zippy and Dragon.