Ethical and Professional Standards Q83

83Hari Ram and his few colleagues are planning to leave Greysons Inc., a local investment bank, to form their private consultancy. Ram has found out that one of his clients has undertaken a request for proposal to hire a new investment adviser. The RFP has been sent to Greysons and all of its competitors but its submission period will end before Ram‟s and his colleagues‟ resignations become effective. Nevertheless, Ram and the departing colleagues decide to respond to the client‟s request. They have most likely violated the CFA Institute Standards of Professional Conduct relating to:

Option : A
Explanation : By responding to the client’s RFP, the group of employees is competing directly with the employer, hence Standard IV(A) Loyalty is violated.

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