Disclosure of Conflicts for Portfolio Managers

Medium Cfa Institute Code And Standards Conflicts - Disclosure

Mark is a portfolio manager at a reputable investment firm. He has been managing a fund that invests heavily in technology stocks. Recently, he was invited to join the board of a technology company, which he sees as a great opportunity to network and gain insights into the sector. However, he knows that this could create a conflict of interest, as he may be privy to non-public information about the company that could influence his investment decisions.

According to the CFA Institute Code of Ethics and Standards of Professional Conduct, what is the most appropriate action for Mark to take in disclosing his potential conflict of interest?

Mark should inform his employer about the board membership and refrain from managing any investments in the technology company.

Mark can accept the board position and continue managing the fund without disclosing his new role to clients.

Mark should disclose his board position only if he believes it will impact the performance of the investment fund.

Hint

Submitted5.3K

Correct4.1K

% Correct77%