is it or is it not OK to solicit colleagues about a new competing firm you plan on starting while you both are still employed at the original firm?
sorry - i have seen this both accepted and rejected in schweser qbank 94505 vs 94815
any help is appreciated - thanks
I went through both questions and IMO they are not alike. May be you should post the questions here so that you can get other people’s opinion. In the1st question he is writing a research report on a company that’ll like hire him while in the 2nd question he is trying to hire a Colleague to work for him in company that would competite with his current employee
I think the answers given in the qbank are correct
I would say it is not allowed as you have a duty to your current employer and by soliciting employees whilst you are still employed is harming your employer
You are not allowed to solicit colleagues while still employed.
I believe that the questions are not related and the answers given are correct. Where is the doubt specifically?
Correct. You can do it once you have properly left.
my apologies…i posted that late last night - i meant qbank 94504 vs 94815 (sorry again)
my doubts are here: in 94504 “Rachel __, CFA, is making preparations to start a competitive business before terminating her relationship with her employer, a large money management company. Young asks Dot Wiggins, CFA, to consider joining her.” the answer states “Breaches that would violate Standard IV (A) include solicitng clients or taking records or files while still working for the current employer.” - so soliciting colleageus is acceptable.
but 94815 states “Pamela ___ is a portfolio manager. She is planning to establish her own money management firm. She has already infomred her employer…” One of the answer choices is soliciting colleagues and the answer states that the only action that will not breach IV(A) is to start registration of her new company - so soliciting colleagues isn’t allowed.
read option A for Q94504 once again. The option is if Young violated Standard IV(A) Loyalty to Employer, because she was making preparations to start a competitive business before terminating her relationship with her employer.
While she may have violated the standard by solictating employees she didn’t do so just by preparing to start a competitive business as the option stated.
Read questions and options carefully for ethics. The questions tend to be tricky. Hope this clears.
So what is this? I’m curious because recently ssome employees of my firm left and started their own competing firm. They have taken a few clients already as wel
94504 doesn’t mention Wiggins is an employee in the same firm - it justs Wiggins, CFA. So can’t say this question approves soliciting colleagues.
Summary is that if 2-week resignation notice is given registration/leasing office space etc is okay as long as it is done at leisure and not during business hours, or in a way that breaches employer. But prior to giving notice, employees can on otheir own time can start to prepare a new business. But in either case, no soliciting clients or taking records is allowed.
“So what is this? I’m curious because recently ssome employees of my firm left and started their own competing firm. They have taken a few clients already as wel”
did they file their PCS with CFA this year yet? 
On a serious note, they can start their own competing firm - as long as they meet the standard. As for clients - if they are known in public databases they can be persuaded to go from the old to the new firm.
There is 1 CFA in their firm and they broke many rules in the standard. They had soliceted their clients to go with them before they left.