The following case:
“Sylvia Bath, CFA, a portfolio manager serving AL, has been asked to review the performance record and resume of a candidate applying for the positin of computer system technician. The candidate was fired from AB Inc., a large investment bank, after being wrongly accused of negligent supervision of the bank’s backup computer system, which subsequently led to its destruction in a site fire.”
The question asks:
When hiring the candidate, which of the following actions will be required by AL to comply with the Asset Manager Code?
One of the answer choices is “Provide disclosure of the details of his employment termination to clients.”
In this case, the candidate has been wrongly accused and portfolio managaer does not have to disclose any details. If the candidate has made an error, but nevertherless his qualification and profile perfectly match the requirements of the position and he is hired, is the portfolio manager required to disclose details of the past employment termination to clients?
Any comments on the case are most welcome!