Explanation:
According to CFA Institute Standard IV(B): Additional Compensation Arrangements, when an additional compensation arrangement creates a potential conflict of interest with the employer, members and candidates must obtain written consent from all parties involved.
In this scenario:
Option A and B are insufficient because they don't address the need for client consent when the additional compensation arrangement involves an employer's client.
Ultimate access to all questions.
Ralph Schmidt, CFA, is an equity analyst at TriAlpha Securities. Schmidt intends to work several hours on weekends to supplement his income, providing equity analysis consulting services to a client of TriAlpha.
To comply with the Standard relating to additional compensation arrangements, Schmidt must:
A
provide written notice only to TriAlpha before entering into a consulting arrangement with the client.
B
obtain written consent only from TriAlpha before entering into a consulting arrangement with the client.
C
obtain written consent from both TriAlpha and the client before entering into a consulting arrangement with the client.
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