Answer: refrain from entering into an independent business while still employed.

## Explanation **Correct Answer: C** **Analysis of Options:** **A. subordinate any personal obligations to their work.** - This is incorrect. The CFA Institute's Code and Standards do not require members to subordinate personal obligations to their work. In fact, the Standards emphasize maintaining a balance and not compromising personal integrity or obligations. **B. place the interests of their employer below the interests of clients.** - This is incorrect. While the Standards require placing client interests first in many circumstances, the loyalty standard specifically addresses duties to employers. Members must act for the benefit of their employer and not deprive the employer of the advantage of their skills and abilities. **C. refrain from entering into an independent business while still employed.** - This is **CORRECT**. According to Standard IV(A) - Loyalty to Employers, members must not engage in independent practice that could result in compensation or other benefit in competition with their employer unless they obtain written consent from all parties involved. This includes refraining from entering into independent businesses that compete with or conflict with their employer's interests while still employed. **Key Principles:** 1. **Loyalty to Employers (Standard IV(A))**: Members must act for the benefit of their employer and not deprive the employer of the advantage of their skills and abilities. 2. **Independent Practice**: Members may engage in independent practice only with written consent from their employer. 3. **Competition with Employer**: Members must not compete with their employer or take actions that could harm the employer's legitimate interests. **Additional Context:** - The loyalty standard requires members to place their employer's interests ahead of their own personal interests in matters related to employment. - Members must not misappropriate employer property or confidential information. - Members may prepare to leave employment (e.g., updating resumes, arranging interviews) but must not engage in activities that directly compete with the employer while still employed.

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