CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

When Kyle Leiman, CFA, joined City Investing, City began using a quantitative stock selection model Leiman had developed on his own personal time prior to his employment with City. One year later, when Leiman left the firm, he found the original copy of the model he had developed in a file at his home and presented it to his new employer, who immediately began using the model. Did Leiman violate any standards?
A. Yes, because he misappropriated property now belonging to City.
B. Yes, because he failed to inform his new employer the model was the same one used by his previous employer.
C. No
Explanation: Although departing employees may not take employer property when departing, the model Leiman presented to his new employer was not City's property. It was created by Leiman prior to his employment with City. The model was not created for City in the course of his employment, but was adopted by City.

User Contributed Comments 1

User Comment
nmech1984 Adopting and using it as an operating lease....xD
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