Question #36
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: A
Question
Grant Starks, CFA, has been working for Advisors, Inc., for eight years. Starks is about to start his own money management business and has given his two-week notice of his resignation. A few days before his resignation takes effect, a current client of Advisors calls him at his office to inquire about some services for her account at Advisors. During the conversation, Starks tells the client that his new business will have lower commissions than Advisors. Starks has most likely violated the Standard concerning:
Answer Choices:
A. loyalty
B. communication with clients and prospective clients
C. disclosure of conflicts
Explanation
Standard IV(A) Loyalty requires members and candidates who are leaving an employer to
act in their employer's interest until their departure takes effect.
(Module 42.7, LOS 42: IV(A))