Explanation:
According to the GARP Code of Conduct regarding conflicts of interest, FRM members must make full and fair disclosure of all matters that could reasonably be expected to impair their independence and objectivity, or interfere with their respective duties to their employer. Jane can accept outside employment that might create a conflict of interest, provided she discloses it to her current employer and obtains their explicit agreement/consent to all terms of the engagement.
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Q.8 Jane Johnson, FRM, works as a full-time risk manager for the Washington Investment Banking Group. Recently, one of Johnson’s long-time friends asked her to help with preparations for an initial public offering (IPO) for a promising tech company based in Silicon Valley. This would be a part-time role and would entail establishing earnings projections for the tech company. Johnson should most likely:
A
Accept the work as long as the Washington Investment Banking Group agrees to all the terms of engagement.
B
Accept the work as long as she does it in her free time.
C
Accept the role as long as, in her own assessment, it does not interfere with her duties to the Washington Investment Banking Group.
D
Not accept the work as it violates the Code of Conduct by creating a conflict of interest.
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