Linda's Ethical Dilemma Concerning Conflict of Interest

Easy Professional Standards Application Conflicts Of Interest

Linda is a CFA charterholder and a portfolio manager at a well-established investment firm. She has been managing client portfolios with strict adherence to ethical guidelines. Recently, she received a lucrative offer from a technology company to promote their new product at a conference. The technology company is also a client of her firm, purchasing a significant amount of stock. Linda is uncertain whether accepting this offer could be perceived as a conflict of interest.

Which action should Linda take to adhere to CFA Institute’s ethical standards regarding conflicts of interest?

Accept the offer without informing her employer, as it does not affect her management responsibilities.

Consult with her firm's compliance officer before making a decision on the offer.

Reject the offer since the technology company is a client and any association could be seen as a conflict.

Hint

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