Ethical Decision on Confidential Information

Easy Professional Standards Application Ethical Decision-making

You are an investment analyst at a reputable firm and have just received information regarding a new regulatory change that may significantly impact the investment climate for a particular industry. While reviewing the details, you realize that you possess unique insights that could benefit your clients, but also understand that public disclosure has not yet occurred.

In light of this situation, which of the following actions would most likely adhere to the CFA Institute's Code of Ethics and Standards of Professional Conduct?

Immediately inform your clients about the regulatory change to give them an advantage.

Wait for the official announcement before discussing the regulatory change with your clients.

Discuss the potential impact of the information with your colleagues to evaluate investment strategies.

Hint

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