Can an analyst prepare to leave an employer?
If a CFA candidate plans to resign and start a new firm, is any preparation before resignation automatically a violation of the duty of loyalty?
Preparation is not automatically a violation. An analyst can usually make general preparations on personal time, such as forming a business entity, renting office space, or drafting plans based on public information.
The line is crossed when the analyst competes with the employer while still employed, solicits current clients before resignation, diverts opportunities, takes confidential information, or uses employer property. On exam questions, the timing and the source of information are usually decisive.
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