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Answer: must provide written notice to TriGamma before entering into an employment arrangement with Lightspeed.
## Explanation According to CFA Institute Standard IV(B): Additional Compensation Arrangements, members and candidates must not accept gifts, benefits, compensation, or consideration that competes with or might reasonably be expected to create a conflict of interest with their employer's interest unless they obtain written consent from all parties involved. In this case: - The outside work (teaching English) is unrelated to Salk's primary role as an equity analyst - There is no apparent conflict of interest with TriGamma Securities - The Standard requires written disclosure to the employer before accepting such arrangements - Option A is incorrect because disclosure is required regardless of company policy - Option C is incorrect because written consent from both parties is only required when there is a potential conflict of interest Salk must provide written notice to TriGamma before entering into the employment arrangement with Lightspeed Languages.
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Terence Salk, CFA, is an equity analyst at TriGamma Securities. TriGamma has no policy governing outside work arrangements of its employees. Salk intends to work a few hours on weekends to supplement his income, teaching English as a second language as an independent contractor for Lightspeed Languages, a firm in his neighborhood.
To be consistent with the Standard relating to additional compensation arrangements, Salk:
A
does not need to inform TriGamma of his employment arrangement with Lightspeed.
B
must provide written notice to TriGamma before entering into an employment arrangement with Lightspeed.
C
is required to obtain written consent from both TriGamma and Lightspeed before entering into an employment arrangement with Lightspeed.
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