解释一下吧，不太能理解本题意思

问题如下：

Which recommendation with regards to Tilton’s agreement is most likely insufficient to prevent a violation of CFA Institute Code of Ethics and Standards of Professional Conduct?

选项：

A.Recommendation 1 B.Recommendation 2 C.Recommendation 3

解释：

Solution

1. Incorrect. Recommendation 1, “You need to draft an agreement outlining what you’re doing and how much they are paying you over the next year,” is necessary to address Tilton’s agreement with her previous employer. The written agreement should state the terms, which include the nature of the compensation, the approximate amount of compensation, and the duration of the agreement. Tilton’s agreement creates two different conflicts of interest. One with Duffy’s clients and potential clients and one between Tilton and her new employer.

2. Correct. With regards to Tilton’s agreement with her previous employer, Recommendation 2, “You and your former employer need to sign the agreement,” is insufficient to prevent a violation of Standard IV(B), Additional Compensation. Standard IV(B) states that CFA Institute members and CFA candidates must not accept gifts, benefits, compensation, or consideration that competes with or might reasonably be expected to create a conflict of interest with their employer’s interest unless they obtain written consent from all parties involved. Duffy addresses the requirement for written consent in Recommendation 2, but it is incomplete. To be in compliance, Duffy should also sign the agreement, not just Tilton and her former employer. Recommendation 1, “You need to draft an agreement outlining what you’re doing and how much they are paying you over the next year,” does meet recommended procedures for compliance with Standard IV(B). The written agreement should state the terms, which include the nature of the compensation, the approximate amount of compensation, and the duration of the agreement. Tilton’s agreement creates two different conflicts of interest. One with Duffy’s clients and potential clients and one between Tilton and her new employer. The conflict of interest the agreement creates with Duffy’s clients is covered under Standard VI(A), Disclosure of Conflicts. Duffy addresses the requirements under Standard VI(A) in Recommendation 3, “We will also need to send notification to all our clients and potential clients disclosing the agreement.” Standard VI(A) states that members and candidates must make full and fair disclosure of all matters that could reasonably be expected to impair their independence and objectivity or interfere with respective duties to their clients, prospective clients, and employer. The second conflict of interest created by Tilton’s agreement is under Standard IV(B) and was addressed when Tilton disclosed the conflict to Duffy.

3. Incorrect. Recommendation 3, “We will also need to send notification to all our clients and potential clients disclosing the agreement,” is necessary to address Tilton’s agreement with her previous employer. Standard VI(A) states that members and candidates must make full and fair disclosure of all matters that could reasonably be expected to impair their independence and objectivity or interfere with respective duties to their clients, prospective clients, and employer. The second conflict of interest created by Tilton’s agreement is under Standard IV(B) and was addressed when Tilton disclosed the conflict to Duffy.

Guidance for Standards I–VII

• recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct