Standard III (D) - Disclosure of Additional Compensation Arrangements - requires members to provide complete disclosure to their employer about any additional compensation arrangements. In order to abide by this, you must:
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A. B. C. D.B
Standard III (D) requires written notification to the employer. This includes any form of communication that can be documented.
Standard III (D) of the CFA® Level 1 curriculum focuses on the disclosure of additional compensation arrangements by members to their employers. The standard emphasizes the importance of transparency and integrity in maintaining professional relationships and avoiding conflicts of interest.
According to Standard III (D), members are required to provide complete disclosure of any additional compensation arrangements they have to their employers. The purpose of this requirement is to ensure that employers are aware of any potential conflicts of interest that may arise due to these arrangements.
To comply with Standard III (D), you have several options for informing your employer about your additional compensation arrangements. Let's go through each answer choice and evaluate their suitability:
A. Inform the legal department in writing: While informing the legal department in writing is a valid option for disclosure, it may not always be the most appropriate choice. The legal department may not be directly involved in the management of your compensation arrangements. It is generally better to disclose this information to individuals who are directly responsible for your employment or oversight.
B. Inform your immediate supervisor in writing or by email: This answer choice is more suitable compared to option A. Your immediate supervisor is typically the person responsible for managing your employment and overseeing your work. Informing them in writing or by email provides a clear and documented record of your disclosure.
C. Inform senior management orally or in writing: While it is important to keep senior management informed about any additional compensation arrangements, relying solely on oral communication may not be the best approach. Oral communication can be subject to misinterpretation or misunderstanding. It is generally recommended to provide written disclosure in addition to any oral communication to ensure clarity and documentation.
D. Inform your supervisor in writing, by email, or orally: This answer choice provides the most comprehensive approach to compliance with Standard III (D). It acknowledges that disclosure can be made in different formats, including written, email, or oral communication. By offering multiple communication options, this answer choice ensures that members have flexibility in disclosing their additional compensation arrangements while maintaining a clear record of the disclosure.
In summary, the most suitable answer choice would be D. Inform your supervisor in writing, by email, or orally. This option allows for comprehensive disclosure and provides flexibility in choosing the appropriate communication method while ensuring clarity and documentation.