If a chief investment officer copies client contacts to aid a new business, he creates a conflict of interest with?

The situation described highlights a potential conflict of interest between the chief investment officer and his employer. When a professional uses client contacts to facilitate new business opportunities for personal gain or to benefit a competing entity, they are undermining the interests of their employer, which typically has contractual and ethical obligations to protect client relationships and proprietary information.

In this context, the chief investment officer's actions can create significant implications for his employer, including potential damage to trust and reputation, loss of clients, and legal repercussions due to breach of fiduciary duties. Such behavior can be viewed as a betrayal of the employer's confidence and resources, which is foundational in the investment management industry.

Thus, the correct answer clearly identifies the source of the conflict of interest, as it affects the employer directly by putting them at risk in terms of client relationships and business integrity. This distinction is crucial, as it emphasizes the responsibility investment professionals have towards their employers in maintaining ethical standards and safeguarding client information.