QUESTIONS 1 THROUGH 18 RELATE TO ETHICAL AND PROFESSIONAL STANDARDS.

11. A CFA charterholder agreed in writing with his former employer not to solicit

former clients for a period of one year after his termination. After he left his

former employer, he consulted with a lawyer about whether the agreement was

legally enforceable. The lawyer advised the charterholder that it was doubtful

that the agreement could be enforced, so the charterholder sent a marketing

brochure about his new firm to his former clients. According to the Standards of

Practice Handbook, which of the following statements is most accurate with

respect to the charterholder’s conduct?

A. The Standards do not apply to the charterholder’s conduct.

B. The Standards require the charterholder to comply with the agreement with

his former employer.

C. Because the charterholder relied upon the opinion of legal counsel, he did not

violate the Standards.