Asian Bank was located in a country with strict laws prohibiting intellectual property transfers. Katty, CFA, is responsible for a team of research analysts at Aisan Bank. Katty believes the work of one of her analysts, Jack, CFA, is not completed as carefully and thoroughly as it should be. Then to confirm her suspicions, Katty completely reviews all of Jack’s research. Katty then confronts Jack about his poor quality research and tells him he can leave Asian voluntarily or be fired.
Jack chooses to leave the bank, walking out with his personal papers and research notes that were created prior to his joining Asian. Subsequently, Jack uses this intellectual property to help establish a high-net-worth investment advisory firm. When a prospective client asks Jack if he left Asian because of questions on the quality of his work, Jack says it was to start his own business. Jack least likely violated the CFA Institute Standards of Professional Conduct concerning his:
C、prospective client disclosure.
B is correct because the analyst has not violated Standard related to intellectual property because there is no indication the analyst was ignorant of, or has violated, any law related to intellectual property, because these documents were created by the analyst prior to his employment at Aian.