Elias Nano, a recent MBA graduate and a CFA Level II candidate, is an unpaid summer intern with Patriarch Investment Counsel and expects to be offered a full-time paid position in the fall. Through his efforts, he is able to convince some family members and friends to become clients of the firm, and he now assists with the management of their accounts. His supervisor congratulates him and states: “These clients are the foundation from which you will be able to build your career as an investment advisor.” After working hard all summer, Nano is told that Patriarch will not be able to offer him a paid position.
Nano interviews with a number of firms, and tells each one about the accounts that he is managing and expects to be able to bring with him. Because he was merely an intern at Patriarch, he does not think he owes any particular loyalty to Patriarch. He gains further assurance that he can keep the clients from the fact that his former supervisor implied that these were Nano’s clients
Does Nano comply with the CFA Institute Standards of Professional Conduct when he asks his clients to transfer their accounts to Markoe Advisors?
No.
Yes, because he contacted the clients after leaving Patriarch.
Yes, because he was an intern and not a paid employee of Patriarch