Question on Ethics

This question has been taken from Schweser Pro. What would you choose? (Qn # 12589 )

Pamela Gee is a portfolio manager. She is planning to establish her own money management firm. She has already informed her employer, Branford, Inc., about her plans. In her remaining time at Branford, she can:

A) solicit Branford colleagues but not Branford clients. B) inform her current clients about her resignation and let them know how to reach her, in case any problems arise in the future. C) start the registration of her new company. D) prepare a list of information from Branford files that she can use for future reference in client solicitation.


that’s correct. But why not B ?

Because that would be in conflict with her current employer. IMO This is no different than soliciting clients while your still working with your employer, the only difference is that shes doing it for a future date.

The book says that you can register your company while still working at your employer without breaking any rules. So asnwer C is the closest to what the book says.

^^ I agree, the book explicitely says that you can register your company while being employed.

but answer B seemed correct to me as well because she was taking care of her clients. Isn’t that the case?

ahh, well with ethics a lot of questions seem correct but not the correctness the cfa is looking for. You can argue that her current employer should be the one solving these future problems instead of her new business… Best stick to the situtions the book explicitly say are correct and hope the really subjective ones don’t come on the exam.

Well by telling the client to reach her for any issue in the future(she is prob no longer workin for the current one) mean she is kinda fishing the customer. there is luckily only one valid answer, its C

Thanks, Zanalyst and coquin22.