"RFP" Quick Question

In regards to Employees and part of the “Duties to Employers” what is a “Request for Proposal” when it comes to hiring new investment consultant? =(

An RFP is basically a questionnaire that is sent to a number of prospective consultants. The consultant will “bid” for the business by listing their fees, terms, etc.

When an entity such as a pension fund, state agency, etc. is looking to hire an investment manager, the will issue a “Request for Proposal,” which is essentially nothing more than an announcement that they are looking to hire someone. To facilitate the process, they put out a document that specifies what questions they would like answered. This ties in with the “duty to employer” section of ethics because its saying you can’t repsond to an RFP that your employer is also responding to. This would apply in a situation where you lare eaving your employer or if you have your own investment business “on the side” (though this is generally frowned upon).

Thank you.