Answer-first summary for fast verification
Answer: retention of investment performance history.
**Explanation:** - **Option A (Incorrect):** Loots violated Standard IV(A)-Loyalty by taking the firm's proprietary trading software, which is considered the employer's property, even if he developed it during his tenure. - **Option B (Incorrect):** Loots violated Standard IV(A)-Loyalty by not acting in the best interest of his former employer. His social media announcements could harm the firm by potentially luring clients away. - **Option C (Correct):** Loots did not violate the standards concerning his investment performance history because he received explicit permission from his former employer to retain it. The violation lies in his actions related to the non-solicitation agreement and the proprietary software.
Author: LeetQuiz Editorial Team
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Jan Loots, CFA, resigned from his position as a portfolio manager at an investment firm where he had previously signed a non-solicitation agreement. Loots obtained approval to retain his investment performance history but also took a copy of the firm's proprietary trading software. He later announced on social media, accessible to friends, family, and former clients, that he was seeking clients for his new investment management firm. Under the CFA Institute Standards of Professional Conduct, Loots least likely violated the standards concerning his:
A
use of proprietary trading software.
B
adherence to the non-solicitation agreement.
C
retention of investment performance history.
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