Question #2
Reading: Reading 42.4 Standards of Professional Conduct Guidance for Standards IV
PDF File: Reading 42.4 Standards of Professional Conduct Guidance for Standards IV.pdf
Page: 1
Status: Unattempted
Correct Answer: A
Question
Janet Thompson, CFA, is employed as an analyst by Nationwide Securities. According to CFA Institute Standards of Professional Conduct, which of the following statements about Thompson's duty to Nationwide is NOT correct? Thompson must refrain from:
Answer Choices:
A. making arrangements to go into a competitive business before terminating her relationship with Nationwide
B. engaging in independent competitive activity that could conflict with the business of Nationwide unless she receives written consent
C. engaging in any conduct that would injure Nationwide
Explanation
Standard IV(A) permits Thompson to make preparations to go into a competitive business
before terminating her relationship with Nationwide provided that such preparations do
not breach her duty of loyalty.
(Module 42.7, LOS 42: IV(A))