CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

Which of the following statements is correct in terms of Standard IV (A) Loyalty to Employer?
A. Written consent is only needed if the work will result in actual compensation.
B. Members are allowed to leave the firm with a list of clients with the intention of using this list to solicit these clients for their new firms.
C. The written consent of the employer is needed before a member can undertake independent work that could result in compensation but that is in competition with the employer.
Explanation: Members shall not undertake any independent practice that could result in compensation or other benefit in competition with their employer unless they obtain written consent from their employer.

User Contributed Comments 5

User Comment
hz2125 any independe practice, not actual compensation
nanash i feel there is a mistake here as i think a member cannot involve in activities that would compete with their employer even with wriiten consent
volkovv I think the intuition here is if employeer doesn't want the member to compete with it, it will not give a consent, if he is consenting than he sees no problem with competition and it will be allowable.
pdubyac Employer has to approve any arrangement that MIGHT result in competition--but note that the CFA charterholder must only disclose arrangements that may result in direct/indirect compensation, but doesn't necessarily need approval for this if it would not ever be viewed as competing with the employer (e.g., getting use of facilities at a country club for managing its trust.)
cfamachine Can in engage in competing employment with written approval if the competing arrangement does not take away from employees duties to employer.
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