Ethics Q

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.

A) a violation of his fiduciary duties.

Is there an answer for this? I would lean towards A, since your client takes precedence, Any thoughts?

C ?

slorte Wrote: ------------------------------------------------------- > C > > ? Slorte, nobody likes swimming with the fishes.

actually, I LOVE snorkeling. and the answer is…

good ? i’ll go A, he should resign…by staying on and soliciting clients he’s sort of guilty by assoc.

Disassociate? Probably the only option…but once your in the mob…well…we’ve all seen goodfellas…


Answer is B, Qbank question, just attempted this one today…

please furnish an explaination…

He is only doing preparations to start his independent consultancy. Also, question doesnt say that he is soliciting clients or plan to during his emploment at firm W. He is allowed to solicit htme after he leaves this comapny.


B, you can make plans to leave while working at a firm, you just cant solicit clients or take firm property to assist with the change. You can even use your lunch hour to prep for the move.

I will still go with A.

Correct Answer is B.