
Explanation:
Mack's actions violated the Standard relating to loyalty by calling his long-term client before leaving Firm 1.
Analysis of Each Action:
1. Calling long-term client before leaving Firm 1 (Violation):
2. Soliciting former clients after joining Firm 2 (Not a violation):
Key Principles:
Therefore, only the pre-departure solicitation violates the Standard of loyalty.
Ultimate access to all questions.
Jerry Mack, CFA, an investment advisor, leaves his employer (Firm 1) to start at a competing firm (Firm 2). Mack does not have a noncompete agreement with Firm 1. Before leaving Firm 1, he calls his long-term client to describe Firm 2's product offerings so he can help the client reach his financial goals. After joining Firm 2, he opens a new social media account. From memory, he finds all his former clients on the social media platform and solicits business from them.
Did Mack's actions violate the Standard relating to loyalty?
A
No
B
Yes, by calling his long-term client
C
Yes, by soliciting business from former clients using the new social media account
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