Question #46
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: 20
Status: Unattempted
Correct Answer: B
Question
Michel Marchant, CFA, recently became an independent money manager. After six months, he has only ten clients. To supplement his income, Marchant accepted employment as an advisor at Middleton Financial Advisors. According to Standard IV(
Answer Choices:
A. inform his existing clients about his new employment at Middleton
B. obtain permission from Middleton to continue his independent practice
C. attempt to bring his existing clients to Middleton
Explanation
Because Marchant's independent practice may conflict with Middleton's interests,
Standard IV(A) Loyalty requires that Marchant obtain permission from Middleton to
continue it. Neither of the other choices describes a requirement of Standard IV(A).
(Module 42.7, LOS 42: IV(A))