Navigating Conflicts of Interest in Professional Conduct

Hard Professional Standards Application Conflicts Of Interest

John is a portfolio manager at Delta Investments. He has recently been offered a lucrative speaking engagement at an investment conference, which is sponsored by a company whose stock he holds in his portfolio. The company has approached him directly to encourage his participation. While John finds the opportunity appealing, he is also aware that his support for the company's stock during the conference could be perceived as a conflict of interest.

As John prepares for his presentation, he reflects on the CFA Institute's Code of Ethics and Standards of Professional Conduct. He wants to ensure that his actions align with professional standards, especially concerning conflicts of interest. He is considering various options for how to handle this situation.

What should John do to adhere to the ethical guidelines related to conflicts of interest?

Accept the speaking engagement and promote the company’s stock, disclosing any personal holdings to the audience.

Decline the speaking engagement to avoid any potential appearance of conflict, ensuring no influence on the investment decision.

Accept the speaking engagement and state to the audience that his views on the company’s stock are strictly personal and do not reflect the interests of Delta Investments.

Hint

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