question archive When Justin Chua, CFA, was hired as a portfolio manager by One World Bank, a global investment bank, he was required to sign an employment contract that includes a noncompete clause, prohibiting him from working in the same industry for five years after leaving the bank
When Justin Chua, CFA, was hired as a portfolio manager by One World Bank, a global investment bank, he was required to sign an employment contract that includes a noncompete clause, prohibiting him from working in the same industry for five years after leaving the bank
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When Justin Chua, CFA, was hired as a portfolio manager by One World Bank, a global investment bank, he was required to sign an employment contract that includes a noncompete clause, prohibiting him from working in the same industry for five years after leaving the bank. One year following his appointment, Chua was laid off due to downsizing. After a three?month job search, he received an offer for the same position by another investment bank in a country where noncompete clauses are considered a violation of human rights and hence illegal.
According to the CFA Institute Code of Ethics, Chua should:
a) Accept the job offer since the noncompete clause is not enforceable in that country.
b) Not accept the job offer because it is a violation of Standard I(D) Misconduct.
c) Accept the job offer because Chua did not resign voluntarily and the noncompete clause is unfair to him.
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According to the CFA Institute code of Ethics, a CFA should comply with the non compete clause for 5 years. Hence, he should not take up the job even if it is in another country. Hence, the correct answer is-
b) Not accept the job offer because it is a violation of Standard I(D) Misconduct.
