Groundlearn / Glossary / Loyalty to employer
Loyalty to employer
A CFA term, defined in plain English with the distinction examiners test.
What it means
The duty to act for the employer’s benefit, not to deprive it of your skills, and not to divulge confidential information.
The exam angle
Preparing to leave is allowed; taking client lists, models or records built on the employer’s time is not. Nothing changes once notice is served.
Where it appears in the syllabus
- Ethical & Professional StandardsCFA Level I · exam weight 10–15% · The Code, the seven Standards, and how examiners phrase violations.
- Ethical & Professional StandardsCFA Level II · exam weight 10–15% · The same Standards, applied to dense vignettes with competing duties.
Related terms
- Code of EthicsThe aspirational statement of how members and candidates should conduct themselves.
- Diligence and reasonable basisThe requirement that any recommendation or action rest on adequate research and analysis that could be defended if…
- Fair dealingTreating all clients fairly when disseminating recommendations or taking investment action.
- Front-runningTrading ahead of a client order to benefit from the price move that order will cause.
- Independence and objectivityThe requirement to use reasonable care and judgement to keep independence, and to refuse any gift or pressure that…
- Market manipulationTransactions or information intended to distort prices or artificially inflate trading volume, in order to mislead…
Educational content only. This is not financial, investment, legal or regulatory advice. Check the official curriculum for your own exam before relying on any definition here.
Practise it in Cornerstone
Snapshot cards and five-question sessions for CFA® and FRM® candidates, free on Android and offline. The full glossary is in the app too, with search.
About CornerstoneOr get a free practice question every day on the Cornerstone WhatsApp channel.