17.
Jimmy Lan, CFA, is a technology analyst at Pacific Securities, Inc. and is a leading authority on Japanese technology companies. Lan's clients include many leading Japanese equity managers. While still employed at Pacific, Lan makes plans during the weekends to start a new company, JL Consulting. His plans consist of contracting office space, interviewing potential employees, and purchasing office equipment. Once he feels ready to launch his new firm, Lan provides Pacific with his resignation notice. After leaving, Lan constructs earnings models of the technology companies he previously covered, using the knowledge and experience gained while at Pacific. He then contacts former clients by using public sources and encourages them to become clients of his new firm. Are Lan's actions in compliance with the Code and Standards? A. Yes, assuming he is not in breach of any non-compete agreement signed while at Pacific Securities B. No, because he is prohibited from engaging in activities related to starting his new business while still employed by Pacific Securities C. No, because the names of former clients, modeling skills, and experience gained by Lan are confidential information of Pacific Securities
