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Basic Question 2 of 7
Standard IV (A) precludes a member from entering into an independent business while still employed. True or False?
User Contributed Comments 5
| User | Comment |
|---|---|
| Chitu | The Standard states that the member is precluded from entering into an independent business while still in employment. However he/she can do so by securing a written permission from the employer to do so. |
| HenryQ | I don't think outside entity need to give permission...out side entity is relevant for additional compensation, not for independent biz. |
| rhardin | Well you would have a new boss in the outside entity that would need to know (and give written permission) for you to practice with your current firm. |
| marianne1 | You need written agreement from your employer |
| gerdvar | Also note, that this permission applies when undertaking the same practice. Eg. if you work for an investment research firm and you want to start an independent investment research firm with your buddy but you don't get consent from your employer, it's a violation even though you haven't been paid for it. However, if you start a Baja style Fish taco food truck with the same buddy, it's not a violation even if you haven't told your employer since both businesses engage in a different practice. |
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Learning Outcome Statements
demonstrate the application of the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity
recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct
identify conduct that conforms to the Code and Standards and conduct that violates the Code and Standards
CFA® 2024 Level I Curriculum, Volume 6, Module 3.