Ethics 5 may be a simple one. I made it wrong. research, management, investment, situation, his

Walex

Nick O’Donnell, CFA, unsuspectingly joins the research team at Wickett & Co., an investment banking firm controlled by organized crime. None of the managers at Wickett are CFA Institute members. Because of his tenuous situation at Wickett, O’Donnell begins making preparations for independent practice. He knows he will be terminated if he informs management at Wickett that he is preparing to leave. Consequently, he determines that “if he can just hang on for one year, he will likely have a client base sufficient for him to strike out on his own.” This action is:
A) a violation of his fiduciary duties.
B) not a violation of his duty to employer.
C) a violation of his duty to disclose conflicts to his employer.

zephyranalyst

A.
He intends to do something evil with the his employees clients when he leaves. or does fiducially on refers tl clients not employyer as well?
isn’t planning to steal employeers clients not a violation?
what is the answer?

ba736

what was the answer here?

meghanjackson

the “only” violation here is he should have dissociated from illegal activity as soon as he realised it was illegal (so quite a big one!).
Looking for employment is not a disclosable conflict and provided it’s on his own time, no fiduciary failure. So B.

hariRaj

I agree he’s violating something, but it doesn’t appear to be fiduciary duty or disclosure to employer.
B

adehbone

why A?
You can prepare to go into business on your own as long as you don’t:
- approach clients
- take files
etc etc etc
Just because he intends to leave in a year is a violation?

infinitybenzo

I would say A.

cyber21

hah! what a BULLSHIT question!
but anyway, it doesn’t say what the preparations he is making are, but I would go for B