CFA Practice Question

CFA Practice Question

Richard Elmer, CFA, has been asked to join the board of directors of his local charity. How should Richard respond?
A. He should decline, as this is prohibited by the Code and Standards.
B. He should disclose his intentions to his employer before accepting the offer.
C. He should only disclose the relationship to the employer if he is going to be compensated monetarily.
Explanation: Irrespective of whether the company has a policy or not, Richard should disclose the offer to his employer before accepting it. As a financial expert, he may be asked to advise on the charity's affairs and investments, which may lead to a conflict of interest. Monetary compensation is not a prerequisite for determination of disclosure obligations.

User Contributed Comments 1

User Comment
orchid need to disclose offer as it may lead to conflict of interest.
Monetary comp not a prerequisite to disclose
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