Ethics Question

Folks lets see how sharp are you all with Ethics: Quan Yang has terminated her professional relationship with Ten Peller Investments (TPI) and has started her own hedge fund . Ms. Yang clearly served as an independent contractor for TPI (working from her home) and had no agreement with the firm with regard to solicitation of TPI clients or retention of client information. After leaving TPI, Ms. Yang called several TPI clients using the contact information sent to her by TPI and saved on her home computer. According to the Standards and Practice, which of the following statements best summarized Ms. Yang’s duties to TPI? A. Since Ms. Yang was an independent contractor, not an employee, she is not subject to the “Duties to Employers” section of the Standards of Practice. B. Ms. Yang is subject to all of the provisions of the “Duties to Employers” but like an employee is free to use the client contact information after leaving the firm. C. Ms. Yang violated the standards by not erasing all client contact information from her home computer when the relationship was terminated.

“C” As an independent contractor, despite the absence of any formal agreement, ethical principles dictate that one has to follow the highest standards.

Take a dip in a deep sea… Answer is C

Thats what I thought - but the answer says A. No explanation provided. *sigh*

This question and answer should probably be counter-checked by CFAI for their buy-off. So you are saying the independent contractor can do all the crap unethical activities they can possibly think of because they are not a regular employee??? What a pleasant loophole!?!?!


anupamjain008 Are you messing up with us? Where is this question from. My guess is there is a typo in the answer— it is cleancut C.

Dear Chowder… have no reason/better ways to mess up with you all here. Source: Question number 15 - The above link is available for everyone to view for free.

That’s off of CAIA. They have alternative ethics.


I thought A for sure. Somewhere in CFAI text it explicitly states differences between Indy contractors and employees. Independant contractor is the key term

Wait…is Yang a CFA charterholder? That makes all the difference.

CAIA is not CFA - so dont go with CAIA answer.

Agreed. This is not CFA material. Though I have a feeling I’m going to look this up when I get home. lol