Any thoughts? In particluar: Schweser Exam 2-PM Q69…If she works for a worldwide company and is providing services to an investment club on her own time…how is that competition? More generally, I always seem to be on the wrong side of what constitutes providing competing services and therefore violating (or not violating) Professional Conduct.
Maybe you skipped the part where she begins “financial service consultations for investment clubs”…the club is “developing an appropriate compensation package for her services”. This is about as black and white as anyone can layout a “competing service”.
yeah…perhaps… i guess i focused on “investment clubs” - picturing a bunch of jokers with small dollars sitting around starbucks picking stocks rather than it being sophisticated financial services… i do seem to always choose wrong on this particular topic though. grrr.
Look at the line of work the person in question does. If they then begin work on the side that does the same thing or benefits from the info it is competing with the employer. In that vignette she woked as an equity analyst for a firm that provides “investment advice and financial planning services globally”…this is exactly what she is providing the investment club and will be getting paid (they’re working on the comp package). And remember compensation doesn’t have to be $…it could be tickets to the theater, free parking space owned by one of the club members, etc. By her providing this service to the investment club, she is stealing potential business away from her employer.