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CFA Level 2
Ethical and Professional Standards

Mark's Consulting Offer Conflict of Interest

Very Easy Professional Standards Application Conflicts Of Interest

Mark is a financial advisor who works for a large investment firm. He is currently managing a portfolio for a client who has expressed interest in socially responsible investments. Recently, Mark received an offer from a company that produces renewable energy products to become a paid consultant for their projects. Mark believes that this consulting opportunity aligns with his client’s preferences for socially responsible investments.

However, there is a potential conflict of interest: if Mark recommends the company's products to his client, he would benefit financially from his consulting role. What should Mark consider in this situation to fulfill his professional standards?

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