CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

In terms of CFA Institute's Standards of Professional Conduct when dealing with the procedures for compliance per Standard IV (A) Loyalty to Employer, which of the following way is NOT an effective method for member compliance?
A. Members seeking other employment should not take any records or files to the new employer without the written permission of the employer.
B. Members acting independently of their employers need not disclose to clients the identities of their employers.
C. Members seeking other employment should not contact existing clients or potential clients prior to leaving their employers.
Explanation: A member should disclose to prospective clients the identity of his employer, clarify that he is working independently of his employer, and even state the fees that the employer would charge for a similar service.

Members seeking other employment should not contact existing clients or potential clients prior to leaving their employer. In addition, they should not take any records or files to the new employer without the written permission of the current employer.

User Contributed Comments 3

User Comment
seele Why not C? While seeking other employment you're still working for the current employer. When you're working how can you not contact any clients?
wollogo I think they mean that you shouldn't try and 'poach' clients to your new position. Obviouslly you would still be in contact with clients if this was part of your normal duties.
samerthehammer Statement C is in compliance with the standard because it says "should not" the question states which statement is NOT in compliance with the standard.
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