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Answer: Statement 2 only.
**Explanation:** - **Statement 1** is incorrect under Standard IV(A) - Loyalty. A member or candidate must not contact existing or potential clients before leaving their employer to solicit business for a new employer. This violates the duty of loyalty to the current employer. - **Statement 2** is correct. According to Standard IV(A), a departing employee is generally allowed to make preparations for a competitive business, such as applying for a license, as long as these actions do not breach the duty of loyalty. This includes performing such activities outside normal working hours and not soliciting clients until after leaving the current employer. - **Option C** is incorrect because only Statement 2 aligns with the Standards. Statement 1 violates the duty of loyalty, as explained.
Author: LeetQuiz Editorial Team
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According to the CFA Institute Standards of Professional Conduct, which of the following statements is accurate? Statement 1: A member may contact potential clients before leaving their current employer to solicit business for a new employer. Statement 2: A member, while still employed, can make arrangements outside normal working hours to apply for a license to establish a competing business.
A
Statement 1 only.
B
Statement 2 only.
C
Both Statement 1 and Statement 2.
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