Financial Risk Manager Part 1
Get started today
Ultimate access to all questions.
Kelvin White, FRM, works for a consultancy firm that specializes in pension fund management in a certain city. Recently, one of his close friends who work for the city's planning and development department approached him with an offer to work as an unpaid volunteer for the department's pension fund. In turn, the department would grant White a free parking space just outside his office. Which of the following is the most appropriate thing to do before accepting the offer?
Other
Community
TTanishq
A
Do nothing as this is a volunteer job.
B
Request the department not to grant him any fringe benefit, including the free parking space.
C
Seek advice regarding the offer from one of his colleagues at the consultancy firm.
D
Disclose the details of the volunteer position to his employer.
Explanation:
Kelvin White should disclose the details of the volunteer position to his employer. This is in line with the GARP Code of Conduct, which states that members should 'make full and fair disclosure of all matters that could reasonably be expected to impair independence and objectivity or interfere with respective duties.' The volunteer position involves pension fund management, which is directly related to his professional work at the consultancy firm. The offer of a free parking space could be perceived as a form of compensation that might create a conflict of interest. Full disclosure to his employer is necessary to maintain transparency and avoid potential ethical violations.
Comments
Loading comments...