handbook page 88, Gardner Allen

CFA Level I
#1

I’m surprised that GardnerAllen did not violate IV(A) by setting up competing firm against her employer. Page 87, Lura Clay example, since Bradley’s director doesn’t seek any exclusivity for Clay’s output, why Clay would violate IV(A) if she were to immediately recommend to Winston the same transactions recommended in the report to Bradley. Really confused!!!

#2

gardner allen didn’t violate the standard b/c he didn’t use either time or data of her current employer. i haven’t found the example on page 87 but there’s a similar problem on p. 72 with Laura Clay. She was employed by the firm and she had an obligation to deliver a report. She used resources and data - so the research would belong to that firm.

#3

thanks a lot gogiants