Jordan's Ethical Decision on Broker-Dealer Invitations

Easy Professional Standards Application Ethical Decision-making

Jordan is a charterholder who has been working as an investment advisor for over five years. Recently, he started receiving invitations from a broker-dealer to attend lavish events, including golf outings, dinners, and exclusive concerts. While he enjoys the perks, he is concerned about whether these sponsorships might affect his objectivity and professional judgment when recommending investments to his clients.

As he contemplates accepting these invitations, Jordan remembers the CFA Institute's Code of Ethics and Standards of Professional Conduct, which emphasize the importance of maintaining integrity and professionalism while acting in the best interests of clients.

What is the most ethically sound course of action for Jordan regarding the invitations?

Accept the invitations as they provide networking opportunities that could benefit his clients.

Decline the invitations and inform the broker-dealer that he prefers to maintain independence.

Accept the invitations but disclose his attendance to his clients to maintain transparency.

Hint

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% Correct73%