Managing Conflicts of Interest

Very Easy Professional Standards Application Conflicts Of Interest

Maria, a CFA charterholder, works as a financial advisor. She recently received an offer to serve as a non-executive director on the board of a company where one of her clients holds a significant investment. Maria is excited about the opportunity, but she knows that accepting this role may create a conflict of interest with her duties to her client.

Which of the following actions should Maria take to best manage this potential conflict of interest?

Accept the board position without informing any stakeholders, as it is a separate role.

Inform her client about the board position and ensure no conflicts arise before accepting.

Decline the board position, as it may distract from her responsibilities as a financial advisor.

Hint

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