Conflict of Interest Management Scenario

Very Easy Professional Standards Application Conflicts Of Interest

As a CFA charterholder, you have a responsibility to adhere to ethical guidelines and maintain professional standards. One of the critical areas of focus is the management of conflicts of interest. Suppose you are an investment advisor and a client approaches you offering to pay for a family vacation in exchange for advice on funneling business to their company. What is the most appropriate course of action according to CFA professional standards?

Accept the offer as it could enhance client relations.

Politely decline the offer and inform the client of the ethical implications.

Accept the offer but only under the condition that you disclose it to your firm.

Hint

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