Major confusion - Ethics "Additional Compensation Arrangements"

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When is it ok to accept additional compensation?
In some practice questions the answer is “reject the compensation”, in others it is ” not violation so long as you disclose in writing and get permission from employer”
Are there an key things i should be looking out for? like when it involves a client compensation for their own portfolio, then it’s ok?? Because either way I feel any additional compensation arrangement will bring into question your “independence and objectivity, or fairness to other clients” even if that is not the case.
Someone help please.
 
I suck at ethics, but I’ll try.
So, if additional compensation is from CLIENT and based on PRIOR performance, you may accept with just disclosure.
If additional compensation is from CLIENT and based on FUTURE performance, you must disclose and get WRITTEN permission from employer before you accept.
 
Thank you.
This was a question from the CFA Learning Ecosystem. was so confused
Q. Jurgen is a portfolio manager. One of her firm’s clients has told Jurgen that he will compensate her beyond the compensation provided by her firm on the basis of the capital appreciation of his portfolio each year. Jurgen should:
  1. Turn down the additional compensation because it will result in conflicts with the interests of other clients’ accounts.
  2. Turn down the additional compensation because it will create undue pressure on her to achieve strong short-term performance.
  3. Obtain permission from her employer prior to accepting the compensation arrangement.
The answer was was C.
 
Yeah, it should be C because the compensation is based on FUTURE PERFORMANCE (as it stated “each year”). If you’re getting paid by a client based on future performance, you need to obtain written permission and disclose.
 
There’s no evidence stating that it will jeopardize other client’s performance. Also there’s nothing that indicates it is based on short term performance. Hence eliminate A and B.
What made you think it was A?
 
Honestly i didn’t even think to try an elimination of what “is not”. I just jumped at A because i “felt” it could negatively affect other clients. Thats the problem, I had been picking answers based on my feelings. Not anymore
 
For ethics its important you consider all options. Its easier on your brain for you to jump to an answer, I know. Deciding on which one to choose is usually the part ppl complain about. That implies that you gotta consider all 3 - which one sounds the most appropriate? And you really have to consider the context of the question. You will need that come L2 and 3 ethics as well. Done well these can be easy marks - don’t let them slip away.
For now, just get to understand the standards more. Once you feel like you get the idea, jump to the questions and practice practice practice. If you get something wrong and couldn’t figure out why, don’t sit there and argue with the answer - it won’t talk back. Ask away here - we do talk back :)
 
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