A CFA charterholder agreed in writing with his former employer not to solicit former clients for a period of one year after his termination. After he left his former employer, he consulted with a lawyer about whether the agreement was legally enforceable. The lawyer advised the charterholder that it was doubtful that the agreement could be enforced, so the charterholder sent a marketing brochure about his new firm to his former clients. According to the Standards, which of the following statements is most accurate with respect to the charterholder's conduct?

A. The Standards do not apply to the charterholder's conduct.
B. The Standards require the charterholder to comply with the agreement with his former employer.
C. Because the charterholder relied upon the opinion of legal counsel, he did not violate the Standards.

Correct Answer: B

A member's duty of loyalty to his employer prohibits him from violating any applicable non-compete agreement. By not complying with a non-compete agreement he also puts his integrity in question.