Addressing Insider Information Ethics

Very Easy Professional Standards Application Ethical Decision-making

James is a chartered financial analyst working for a well-known investment advisory firm. One day, he discovers that his colleague has been using inside information to influence their investment recommendations. James is uncertain about how to address this situation, as he values his professional relationships but also understands the importance of ethical standards in his profession.

Which of the following actions should James prioritize based on the CFA Institute's Code of Ethics and Standards of Professional Conduct?

Ignore the situation as it does not directly involve him.

Report his colleague's behavior to a supervisor or compliance department.

Confront his colleague directly and advise them to stop.

Hint

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