Question #35
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: 15
Status: Correct
Correct Answer: B
Question
Francisco Perez, CFA, is an equity research analyst for a long-term investment fund. The fund is seeking new clients, so Perez contacts old clients he knew through his former employer. Which of the following is most accurate?
Answer Choices:
A. Perez is not prevented from soliciting clients as long as he is working from memory and publically available information rather than a list generated while he was still with the former employer
B. Perez can only solicit clients after notifying his former employer
C. Perez cannot solicit clients from a former employer
Explanation
According to Standard IV(A), Perez is not prevented from soliciting clients as long as he is
working from memory and publically available information rather than a list generated
while he was still with the former employer.
(Module 42.7, LOS 42: IV(A))