Arvantis works for Quick-time Brokerage. He has not been happy with his employment for some time and recently decided to start his own hedge fund. He started making administrative preparations for setting up the fund while still working for Quick-time Brokerage. He also made contact with a few of his oldest clients and gave them details about his hedge fund. The clients promised to switch accounts once the fund was initiated. Arvantis has:
I. violated Standard III (B) - Duty to Employer by making preparations to enter a competitive business while still being employed with Quick-time Brokerage.
II. violated Standard III (B) - Duty to Employer by soliciting Quick-time Brokerage's clients while still being employed with Quick-time Brokerage.
III. not violated Standard III (B) - Duty to Employer.
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A. B. C. D.B
Standard III (B) - Duty to Employer - does not preclude a departing employee from making arrangements to enter independent practice prior to leaving current employment, as long as such preparations do not constitute a breach of loyalty toward the employer. However, undertaking any activity that harms the current employer is a violation of III (B).