Responsibility to Clients in Sustainable Investing

Easy Professional Standards Application Responsibilities To Clients

Jane is a CFA charterholder and a financial advisor at a reputable investment firm. She has a client, Mr. Lee, who is deeply interested in sustainable investing. Mr. Lee expresses his desire to align his investment portfolio with his ethical values, specifically requesting that no investments be made in fossil fuels. Jane reviews available investment options and finds a well-performing fund that invests partially in renewable energy but still includes some exposure to fossil fuels. She believes this fund could offer Mr. Lee a good return on his investment.

Before making a recommendation, Jane considers her responsibilities to Mr. Lee as outlined by the CFA Institute’s Code of Ethics and Standards of Professional Conduct. What should Jane prioritize in deciding how to proceed with Mr. Lee’s investment portfolio?

Prioritize returns and recommend the fund since it performs well.

Respect Mr. Lee's values and refrain from recommending any fund with fossil fuel exposure.

Suggest a diversified portfolio that includes only traditional energy investments for maximum performance.

Hint

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