Lesson 3 of 4 · All lessons in this module
This lesson is part of the 2027 curriculum. You are following the 2026 curriculum, where it is not taught in this form. Switch if you are sitting the exam under the 2027 curriculum.
Lesson 3 of 4 · 15 min
Standard IV(B) and IV(C) cases: outside pay and supervision
Outside pay that could sway you needs your employer's written consent before you take it; supervisors must build systems that prevent and detect violations, make sure they are followed, and act on what they learn.
In short
- IV(B) test: is it compensation or a benefit, in cash or in kind, from a client or third party, that competes with the employer or could reasonably create a conflict? If so, get documented consent from the employer before accepting.
- The report to supervisor and compliance states the nature, approximate amount and duration, confirmed by whoever is offering it. Pre-approval, declining what you can, and disclosing the unavoidable is the model pattern.
- Consent satisfies IV(B) only. A paid consultancy or directorship still has to be avoided or disclosed to clients under VI(A).
- IV(C) covers everyone under your authority, member or not. The duty is prevention and detection: written procedures, training, ethical incentives, review and enforcement.
- Once a problem surfaces, investigate promptly, limit or monitor the person and review the procedures. A warning, an assurance or a report up the chain is not enough.
- A supervisor with reasonable procedures is not in breach when a violation slips through, but is if they know or should know that the procedures are not being followed.
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