Ethical and Professional Standards Q60

60Lara Whitman, CFA, worked for Rapid Results Brokerage Company (RRBC) as a trader. She recently resigned her position as a trader to join another competing investment and brokerage firm. Whitman did not sign any non-compete agreement while at RRBC that would have prevented her from soliciting former clients. Whitman, however, had saved her client list and records while working at RRBC, in her personal computer at home as a second copy. She accesses this file to contact her former clients in her new job. The Standard most likely violated is:

Option : A
Explanation : Standard IV(A) Loyalty is most likely violated. A member cannot take records or work performed on behalf of the firm in paper copy or electronically without permission to another firm. In this case she cannot use the firm’s records of clients without the firm’s permission.

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