Which of the following statements is/are correct under the Code and Standards?
I. AIMR members are prohibited from undertaking independent practice in competition with their employer.
II. Written consent from the employer is necessary to permit independent practice that could result in compensation or other benefit in competition with a member's employer.
III. Written consent from the outside prospective client is necessary to permit independent practice that could result in compensation or other benefit in competition with a member's employer.
IV. Members are prohibited from making arrangements or preparations to go into a competitive business before terminating their relationship with their employer.
Click on the arrows to vote for the correct answer
A. B. C. D.D
This question pertains to Standard III (B), which states that members may undertake independent practice that may result in compensation or other benefit in competition with a member's employer, so long as they obtain written consent from both their employer and those for whom they undertake the independent practice. Statements II and III are consistent with this Standard. Statement I is incorrect because the Standards do not completely prohibit independent practice.
Also, Statement IV is incorrect because the Standards allow members to make arrangements or preparations to go into competitive business so long as those arrangements do not interfere with their duty to their current employer.