Ethics - Outside Employment & Compensation

CFA Level III Ethics
#1

Hi all,

I have tried searching past posts but haven’t had much luck clarifying this.

When do you need to disclose / get permission from your employer for outside employment and compensation?

I understood it as either

  1. When it was such a big time commitment it could be expected to take away from your regular work or deprive your employer of your skills (regardless of the nature of the work)

  2. When you are being compensated for a job that is in DIRECT COMPETITION with your employer

So in this case, you would not need to disclose in writing to your employer if you were being compensated for an unrelated job? Ex// As a personal trainer or a carpenter…am I correct on this or do you need to get permission for any compensation received for outside work, regardless of the nature of that work. I am finding myself even more confused with the CFAI EOCs.

Thanks

#2

As I understand this issue, not only under CFAI Code of Ethics than in real life as well, you need written permission from each party regarding your employment contracts. The only exceptions are mostly voluntary or symbolic compensation based activities.

#3

I thought if you were a portfolio manager and you took a job bartending part time on the weekend you didn’t need permission as this is not competing with your time for your current job and not competing directly with your current jobs goals?