LEt me get this idiocy straight: You can take your old client list but cannot solicit them when you leave the firm, unless they are already unwanted clients? This is like being able to own a bong, but not smoke the weed…
You can’t take the list. You have to memorize. You can solict from memory.
You can’t take the client list regardless of the status. It’s your former employer’s property. You can recite the client list from memory as it counts towards part of the experience that you have earned while working for your former employers. You can’t solicit clients of your former employers that would result in material harm or deplete advantages of your former employers. You can solicit former clients or prospective clients of your former employers who are deem unwanted by your former employers.
eltia Wrote: ------------------------------------------------------- > > You can’t solicit clients of your former employers > that would result in material harm or deplete > advantages of your former employers. > Are you sure? I thought AFTER you leave you can call people (from memory)
You need permission from your employer to solicit existing clients. You can solicit those clients which you company has refused earlier.
are you clients allowed to follow you if you dont sollicit them?
Yes, your client can liquidate their portfolio at your previous firm and can join your new company. This is client driven industry. Clients can do anything they want as it is their own money.
Your former employer’s clients are free to contact you. It’s their decision to ditch your former employer to become your client (and in the process causing harm to your former employers) if they choose to.
cfaboston28 Wrote: ------------------------------------------------------- > You need permission from your employer to solicit > existing clients. You can solicit those clients > which you company has refused earlier. Why do you need to call your former employer? You can’t just go ahead and call to let them know you have moved. Assuming you remember their names from memory?
Correct Danlieb - once an employer has left a firm, simple knowledge of names and existence of former clients is generally not confidential. If you sign non-compete agreement then you are definately not allowed to solicit.
You Can 1. Call any client whose info you have in your memory. 2. Use a phone book to look up a client’s number whose name you just remember. 3. Solicit any client that you know well too. (assuming no Non Compete is in effect) 4. Prepare to leave firm, set up own firm, etc on your own time while you are at current employer. You Cannot 1. Take any information (client list, statements, IPS, etc) without PERMISSION from employer as it is their property. 2. Self Deal, solicit clients to new firm while still employed at old firm. 3. Violate Duty to employer
Also, they say you must delete all company specific information (Client Info, IPS, models, statements, etc) on your personal PC/Flash Drive when you leave an employer. Regardless if any normal person would do this in real life, for sake of getting to L3, tell the CFAI, yes, you’ll do just that!