Duty to Employer (Ex. Tony Hill and Team)

CFA Level III Ethics
#1

On page 211 of the curriculum, It asked, “did Hill violate the Code and Standards by asking his team to join him at his new firm?” The answer is “No” because " A departing employee is generally free to make arrangements or preparations to go into a competitive business before terminating the existing relationship with the current employer". However, I picked the choice that it’s a violation. The reason is that by asking his team to join his new firm, Hill would indirectly tell his team about the resignation. And on page 210, telling team about his resignation after promising the Board that he’s not going to release this info is a violation.

I feel the material is contradicting and would like to get some explanation. Thank in advance!

#2

Can you provide more details about the scenario? I don’t believe telling the team “generally” about the resignation is a violation. Unless the scenario explicitly mentioned that he promised his employer not to tell anyone about the resignation, then yea I would have considered it a violation too. But if such information is missing from the scenario, then you cannot assume that he made such promise.

#3

Thanks for the reply. Yes, Hill promised to the Board he will delay the announcement of the resignation

#4

Well this is very weird… I am curious to see if anyone can shed light as to why this is not a violation.