Lesson 2 of 4 · All lessons in this module
This lesson is part of the 2027 curriculum. You are following the 2026 curriculum, where it is not taught in this form. Switch if you are sitting the exam under the 2027 curriculum.
Lesson 2 of 4 · 16 min
Standard IV(A) cases: loyalty, outside work and leaving
While a firm pays you, you act for its benefit: prepare and plan freely, but never compete, solicit, take records or leak its views, and let clients and market integrity outrank the firm only when protecting them is the clear aim.
In short
- Three questions settle most IV(A) vignettes: whose property is it (records, models, work product, accounts), is employment still running (a resignation letter does not end it), and whose benefit does the act serve?
- Preparing on your own time is allowed. Competing, soliciting, bidding or serving clients needs your employer's consent to all terms. Outside paid work that does not compete is allowed, but talk to the employer if it could detract from your job.
- What you made or stored for the firm is the firm's, including files you wrote yourself and anything on a home computer or phone. Status as an employee depends on control, not on the title you are given.
- After you leave, skills, experience, public information and the bare fact that someone was a client are yours; client lists and files are not. Always check for a noncompete or non-solicitation agreement.
- Firm policies bind you only as far as they do not conflict with law or the Code. Whistleblowing that breaks the rules is justified only when clearly aimed at protecting clients or the market, never for personal gain.
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