Concerning loyalty and investment practices, what must an analyst do before accepting payment from an external client?

Before accepting payment from an external client, an analyst must seek consent from their primary employer. This is important because it aligns with the ethical obligation of loyalty to the employer, ensuring that there is no conflict of interest that could impact the analyst's primary responsibilities. Analysts are expected to act in the best interest of their employer and maintain transparency about any external financial arrangements.

Obtaining consent from the employer also protects the integrity of the analyst's work and the organization's reputation. It is a critical practice to ensure that all parties are aware of any external commitments that might affect the analyst's judgment or the firm's objectives in investment practices. This requirement also helps maintain professional standards and fosters trust within the industry.