CFA Level 1: Standard III (B) - Duty to Employer

Standard III (B) - Duty to Employer

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Question

Which of the following is true about Standard III (B) - Duty to Employer?

Answers

A. It prohibits a departing employee from making arrangements to enter independent practice prior to leaving current employment.

B. It precludes a member from entering into an independent business that is in direct competition with the employer.

C. It requires the employee to obtain written permission from the employer as well as the outside entity before entering independent practice.

D. It requires departing employee to give all the details about the independent practice before leaving the current employment.

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Explanations

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A. B. C. D.

Standard III (B) - Duty to Employer - does not preclude a member from entering into independent practice while still employed. It does require the employee to obtain written permission from the employer as well as the outside entity before doing this. It does not prohibit 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.

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