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CFA Level 2
Ethical and Professional Standards

Ethical Decision-Making in Client Investment Requests

Hard Professional Standards Application Ethical Decision-making

As a financial advisor at a prestigious investment firm, you are approached by a client who has recently experienced significant personal losses. This client, who is emotionally distressed, requests that you withdraw all funds from their investment account and invest them in a highly speculative venture, promising extraordinarily high returns. You are aware this investment contravenes the client's previously established investment strategy, which prioritized long-term growth and risk management.

In considering your professional responsibilities, you need to decide on the appropriate course of action that aligns with ethical practices and fiduciary duties.

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