Ethical Decision-Making in Confidentiality Settings

Hard Ethical Decision-making Professionalism

Julian is a financial analyst at a large investment firm and has been approached by a client, a wealthy business owner, who asks him to provide inside information about an emerging technology company that the firm is considering investing in. Julian knows that his firm is conducting due diligence on this company but is also aware that sharing any internal insights could lead to significant market advantages for the client.

Before the meeting concludes, the client offers Julian a bonus for his help. Julian is conflicted about the situation as he deeply values his relationship with the client, yet he is also aware of the ethical and legal ramifications of sharing confidential information.

Which of the following actions should Julian take to uphold the principles of professionalism as outlined in the CFA Institute's Code of Ethics and Standards of Professional Conduct?

Agree to share unconfirmed insights about the technology company with the client to maintain the relationship.

Politely decline the client's request and inform them that sharing such information would violate confidentiality rules.

Consult with his firm's compliance department to see if there is a way to legally share the information.

Hint

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