Sue Parsons, CFA, works full-time as an investment advisor for the Malloy Group, an asset management firm. To help pay for her childrens college expenses, Parsons wants to engage in independent practice in which she would advise individual clients on their portfolios. She would conduct these investment activities only on weekends. Which of the following statements about Standard IV(A), Loyalty to Employer, is most accurate? Standard IV(A): A) does not require Parsons to notify Malloy of preparing to undertake independent practice under the current conditions. B) precludes Parsons from entering into an independent competitive activity while still employed by Malloy. C) requires Parsons to notify Malloy in writing about her intention to undertake an independent practice. D) requires Parsons to obtain written consent from both Malloy and the persons from whom she undertakes independent practice. The correct answer was A. Standard IV(A), Loyalty to Employer, requires that Parsons obtain written consent only from her employer before she undertakes independent practice that could result in compensation or other benefit in competition with Malloy. It is not required to get permission from your employer when only preparing to go into independent practice. How is this not C (or even D)? I thought you always needed written permission from your employer at the least. I can’t find this in any of the readings.
A is correct, as she doesnt need to “notify Mally of PREPARING to undertake” independent practice… She WILL need consent from her employer though once she is ready to conduct the investment activities. VERY TRICK Question.
yuppers - bigwilly’s got the trick. PREPARING is the key word here.
^ I am so doomed
why isn’t D. also valid, which isn’t related to “preparing”, but actually “doing” (I think), since it’s clear from the “Ethics in Practice” reading that you need written consent from all parties??
I most likely would have read it too quickly and picked D even though D is incorrect… We all need to slow down especially on Ethics.