CFA Practice Question

CFA Practice Question

Which of the following statements is (are) correct under the Code and Standards?

I. CFA Institute members are prohibited from undertaking independent practice in competition with their employer.
II. Written consent from the employer is necessary to permit independent practice that could result in compensation or other benefit in competition with a member's employer.
III. Written consent from the outside prospective client is necessary to permit independent practice that could result in compensation or other benefit in competition with a member's employer.
IV. Members are prohibited from making arrangements or preparations to go into a competitive business before terminating their relationship with their employer.
A. I and II only.
B. III and IV only.
C. II only.
Explanation: The Standard (IV. A - Loyalty) states that members may undertake independent practice that may result in compensation or other benefit, in competition with their employer, if they obtain written consent from their employer.

User Contributed Comments 1

User Comment
dimanyc III: there is no mentioning of obtaining written permission from prospective clients.

IV is incorrect because members are allowed to make administrative preparations.
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