Chartered Financial Analyst (CFA) Ethics Practice Test

When you’re employed, you owe loyalty to your employer, and you must avoid activities that could conflict with their interests or compete with their business. If you’re considering independent practice that might compete with your employer or bring you compensation or other benefits tied to that competition, you must obtain explicit written consent from the employer before proceeding. The written form matters because it creates a clear record of what’s allowed, sets any conditions, and helps manage conflicts of interest. That’s why the best choice states that written consent from the employer is necessary to permit independent practice that could result in compensation or other benefits in competition with the employer. Verbal consent isn’t sufficient, and client approval does not substitute for the employer’s consent.