5、Jefferson Piedmont, CFA, a portfolio manager for Park Investments, plans to manage the portfolios of several family members in exchange for a percentage of each portfolio's profits. As his family members have requested that Piedmont provide the services outside his employment with Park, he notifies his employer in writing of his prospective outside employment. Two weeks later, Piedmont has received no response from his employer and begins managing the family members' portfolios. By managing these portfolios, did Piedmont violate any CFA Institute Standards of Professional Conduct?

A. No.

B. Yes, because he failed to obtain written consent from his employer.

C. Yes, because he failed to disclose the outside employment to his existing clients.

D. Yes, because he violated the employee-employer principle by not requiring his relatives to place their accounts with his employer.

Correct answer = B

Standards of Practice Handbook, 9^th edition (CFA Institute, 2005), pp. 83-85
Standards I-VII
2008 Modular Level I, Vol. 1, pp. 69-71
Study Session 1-2-a
demonstrate a thorough knowledge of the Code of Ethics and Standards of Professional Conduct by applying the Code and Standards to specific situations presenting multiple issues of questionable professional conduct
Members who plan to engage in independent practice for compensation should not render services until receiving written consent from their employer.