Abasi Hasina, CFA, signed a non-compete clause as a condition of employment. Years later, he takes a similar role in a country where non-compete agreements are illegal. Did Hasina most likely violate the CFA Institute Code of Ethics and Standards of Professional Conduct?

• A. Yes
• B. No, because the clause violates his human rights
• C. No, because the clause is illegal in the new country
• D. Cannot determine

Answer: (A)

The main idea is that CFA Institute ethics require you to act in compliance with the laws of the jurisdiction where you practice and to avoid arrangements that improperly restrain competition or undermine the profession. A non-compete contract is an employment restraint, and moving to a country where such restraints are illegal raises questions about relying on that contract to dictate where you can work. Even if the clause isn’t enforceable where he works, leveraging a contract that conflicts with local law can be seen as not upholding lawful and fair professional practice, which the Code emphasizes. So taking a similar role in a place where non-competes are illegal would likely violate ethical standards. The other choices don’t fit because the CFA Code basis here is legal and competitive integrity, not human rights arguments, and there is enough information to assess the ethical issue rather than declaring it undeterminable.