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Answer: obtain written consent from both TriAlpha and the client before entering into a consulting arrangement with the client.
## 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: - Schmidt is providing equity analysis consulting services to a client of TriAlpha - This creates a clear conflict of interest since Schmidt's outside work is directly related to his primary employment - The client relationship belongs to TriAlpha, and Schmidt would be using his professional expertise for personal gain - Written consent is required from both TriAlpha (the employer) and the client 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.
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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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