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Answer: Yes, the Standard relating to additional compensation arrangements
## Explanation Grewal has violated **Standard IV(B): Additional Compensation Arrangements**. **Key Points:** 1. **Standard IV(B) Requirements:** Members must obtain written consent from their employer before accepting compensation or other benefits from third parties that could reasonably be expected to create a conflict of interest with their employer. 2. **Application to this case:** - Grewal receives compensation (nominal fee) from the school - This is an additional compensation arrangement outside his primary employment - He did not disclose this arrangement to his employer - Even though the compensation is nominal and the activity is charitable in nature, the Standard still requires disclosure and consent 3. **Why not Standard VI(A): Disclosure of Conflicts?** - While this could also involve a potential conflict of interest, the primary violation is specifically related to the additional compensation arrangement without employer consent - Standard IV(B) is more directly applicable to this situation 4. **Important Considerations:** - The charitable nature of the activity does not exempt Grewal from the disclosure requirement - The amount of compensation (nominal) is irrelevant to the requirement for disclosure - The employer has the right to know about all compensation arrangements that could potentially create conflicts **Correct Answer:** C - Yes, the Standard relating to additional compensation arrangements
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Manpreet Grewal, CFA, is a wealth manager and also teaches underprivileged children at a school on holiday weekends. The school pays Grewal a nominal fee for his services. Grewal does not disclose this arrangement to his employer. Has Grewal violated the Standards?
A
No
B
Yes, the Standard relating to disclosure of conflicts
C
Yes, the Standard relating to additional compensation arrangements