Anna Jones, a portfolio manager at XYZ Securities, has handled the retirement fund of ABC Industrial, a large institutional client, for several years. ABC now wishes to hire Anna as a consultant and advisor for its strategic planning. Anna likes working at XYZ Securities and feels she can handle the consulting work in her spare time. Which of the following statements regarding Standard IV-A, Loyalty, is true?
a) While she is encouraged to make full disclosure, Anna has no formal obligation to inform XYZ of her consulting work since there is no conflict of interest.
b) Anna must inform both interested parties, in writing, describing the type of service to be rendered, the duration of services and expected compensation.
c) Anna may take the compensation work for ABC Industrial, so long as she formally documents that she is working a minimum of 40 hours a week for her primary employer.
d ) Anna must refuse all consulting work out of loyalty to XYZ.
The correct answer is: b)The "duty of loyalty" to one's employer requires full and formal disclosure. Once provided with the information, the employer can then make a sensible judgment as to whether the outside relationship compromises this loyalty.
The correct answer is A) In a Roth IRA, there is no required distribution date as there is in a traditional IRA.
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The correct answer is C). SEC Release IA-1092 considers financial planners, pension consultants and sports and entertainment ...
The correct answer is a): Since Todd owns the stock and expects another stagnant year ahead, he would employ a covered call ...
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