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CFA Level I · CFA Level I Exam · Guidance for Standard IV: Duties to Employers

Under Standard IV(B) Additional Compensation Arrangements, a member must obtain written consent from all parties involved before accepting compensation that competes with or might reasonably be expected to create a conflict of interest with the employer's interest. Which of the following forms of communication most likely satisfies the written consent requirement?

An email that can be retrieved and documented most likely satisfies the requirement. The guidance says written consent includes any communication that can be documented. Verbal approval or an assumed understanding leaves no record, so it does not meet the standard.

  1. AAn email that can be retrieved and documentedCorrect
  2. BA verbal approval from the supervisor in a corridor
  3. CA general understanding that the employer would not object

Explanation

The guidance states that written consent includes any form of communication that can be documented, for example an email that can be retrieved and documented. A verbal approval or an assumed understanding cannot be documented, so neither provides the required consent.

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