Q20. Janet Thompson, CFA, is employed as an analyst by Nationwide Securities. According to CFA Institute Standards of Professional Conduct, which of the following statements about Thompson's duty to Nationwide is FALSE? Thompson must refrain from:

A)   engaging in any conduct that would injure Nationwide.

B)   making arrangements to go into a competitive business before terminating her relationship with Nationwide.

C)   engaging in independent competitive activity that could conflict with the business of Nationwide unless she receives written consent.

Q21. John Hill, CFA, has been working for Advisors, Inc., for eight years. Hill is about to start his own money management business and has given his two-week notice of his resignation from Advisors. A few days before his resignation takes effect, a former client of Advisors calls Hill at his home about his new firm. The former client says that he is very happy that Hill is leaving Advisors because now he and Hill can resume a professional relationship. The client says that he would never become a client of Advisors again. Hill promises to call the client back after he has left Advisors. Hill does not tell his employer about the call. Hill has most likely violated:

A)   both Standards IV(A) and VI(A).

B)   neither of these Standards.

C)   Standard IV(A), Loyalty to Employer, by lining up business before he leaves the firm.

Q22. Grant Starks, CFA, has been working for Advisors, Inc., for eight years. Starks is about to start his own money management business and has given his two-week notice of his resignation. A few days before his resignation takes effect, a current client of Advisors calls him at his office to inquire about some services for her account at Advisors. During the conversation, Starks tells the client that his new business will have lower commissions than Advisors. Starks has most likely violated:

A)   Standard VI(B), Priority of Transactions, by violating the priority of transactions.

B)   none of these Standards.

C)   Standard IV(A), Loyalty to Employer, by competing with his current employer.

Q23. John Hill, CFA, has been working for Advisors, Inc., for eight years. Hill is about to start his own money management business and has given his two-week notice of his resignation from Advisors. A few days before his resignation takes effect, on his lunch hour, he takes out a loan from a bank on behalf of his new business and uses the money to buy some office equipment for his new business. Since he engaged in these transactions while still an employee of Advisors, Hill violated Standard IV(A), Loyalty to Employer, by:

A)   neither of these actions.

B)   engaging in a financial transaction, like taking out a loan, only.

C)   both taking out the loan and purchasing the office equipment.

答案和详解如下：

Q20. Janet Thompson, CFA, is employed as an analyst by Nationwide Securities. According to CFA Institute Standards of Professional Conduct, which of the following statements about Thompson's duty to Nationwide is FALSE? Thompson must refrain from:

A)   engaging in any conduct that would injure Nationwide.

B)   making arrangements to go into a competitive business before terminating her relationship with Nationwide.

C)   engaging in independent competitive activity that could conflict with the business of Nationwide unless she receives written consent.

Correct answer is B)

Standard IV(A) permits Thompson to make preparations to go into a competitive business before terminating her relationship with Nationwide provided that such preparations do not breach her duty of loyalty.

Q21. John Hill, CFA, has been working for Advisors, Inc., for eight years. Hill is about to start his own money management business and has given his two-week notice of his resignation from Advisors. A few days before his resignation takes effect, a former client of Advisors calls Hill at his home about his new firm. The former client says that he is very happy that Hill is leaving Advisors because now he and Hill can resume a professional relationship. The client says that he would never become a client of Advisors again. Hill promises to call the client back after he has left Advisors. Hill does not tell his employer about the call. Hill has most likely violated:

A)   both Standards IV(A) and VI(A).

B)   neither of these Standards.

C)   Standard IV(A), Loyalty to Employer, by lining up business before he leaves the firm.

Correct answer is B)

Based upon the information here, Hill has done nothing wrong. He took a call at his home, presumably on his own time, and the client made it clear that he would never be a client of Advisors. Therefore, there was no breach of loyalty to Advisors by Hill, nor is there a conflict of interest.

Q22. Grant Starks, CFA, has been working for Advisors, Inc., for eight years. Starks is about to start his own money management business and has given his two-week notice of his resignation. A few days before his resignation takes effect, a current client of Advisors calls him at his office to inquire about some services for her account at Advisors. During the conversation, Starks tells the client that his new business will have lower commissions than Advisors. Starks has most likely violated:

A)   Standard VI(B), Priority of Transactions, by violating the priority of transactions.

B)   none of these Standards.

C)   Standard IV(A), Loyalty to Employer, by competing with his current employer.

Correct answer is C)

This is a breach of loyalty to his current employer. By telling a current client of his employer about the lower commissions he will charge in his new business, Starks is placing himself in direct competition with Advisors, and this is a violation of Standard IV(A).

Q23. John Hill, CFA, has been working for Advisors, Inc., for eight years. Hill is about to start his own money management business and has given his two-week notice of his resignation from Advisors. A few days before his resignation takes effect, on his lunch hour, he takes out a loan from a bank on behalf of his new business and uses the money to buy some office equipment for his new business. Since he engaged in these transactions while still an employee of Advisors, Hill violated Standard IV(A), Loyalty to Employer, by:

A)   neither of these actions.

B)   engaging in a financial transaction, like taking out a loan, only.

C)   both taking out the loan and purchasing the office equipment.

Correct answer is A)

The Standards of Practice under IV(A) expressly says that a departing employee is “generally free to make arrangements or preparations to go into a competitive business before terminating the relationship with the employee’s employer provided that such preparations do not breach the employee’s duty of loyalty.” Neither of these actions are in conflict with the interests of Advisors, and Hill performed them on his own time.

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