Assessing Ethical Implications in Client Solicitation

Maria is a senior portfolio manager at Alpha Investments, where she has been employed for the last eight years. Recently, she was approached by a competing firm, Beta Asset Management, offering her a lucrative position that involves managing their flagship equity fund. Excited about the opportunity, Maria prepares to transition to Beta Asset Management, but she also remembers her existing non-compete agreement with Alpha Investments, which restricts her from soliciting Alpha’s clients for a period of one year after leaving the firm.

Before informing Alpha Investments of her decision, Maria decides to call a few key clients from her portfolio to gauge their sentiments about the transition and whether they would be willing to follow her to Beta Asset Management. She believes this move could potentially influence her decision to accept the new offer. In this context, consider the ethical implications of Maria’s actions with respect to the CFA Institute’s Code of Ethics and Standards of Professional Conduct, specifically pertaining to her responsibilities to her employer.