A. situational influences
Conflicts of interest: are there any encumbrances, relationships, or incentives influencing your actions?
| sgillespie: Why is the answer B, and not A (Situational Influences)?|
From the CFA reading (page 27, "Solution to 6") - "The bonus and his colleague's desire to help his mother are situational influences."
|john6668: Agreed with sgillespie, even in AnalystNotes reading Reading 1 Subject 3, situational influence notes "...They can motivate individuals to act in their short-term interest without recognizing the long-term risks or consequences for themselves and others. Examples include financial rewards..."|
| Daood12: Option B is correct , because In exhibit 3 -Identification phase from the CFA Reading (page 23, 'solution to 6') , it writes under point 3 |
conflicts of potential conflicts of interest include the following ;
- My bonus,compensation, and career prospects are tied to my supervisor's and the IPO's success; duty to employe
| Daood12: Duty to employer is key word here, as there is a potential conflict of interests between what duty to employer demands and what desire for bonus, compensation and career prospects demand. |
A situational influence it will become, when there is a question of bonus , compensation and career prospects versus the contribution by the employee in a deal. Which will influence the employee's bonuses etc
|UcheSam: The question decided to be silent about the Duty to Client which is the most important but harped on compensation being tied to employer’s success. Duty to client is given and one should not be told. Your duty to your client may conflict with your duty to your employer.|