Disclosure of Conflicts of Interest in Financial Consulting

Easy Cfa Institute Code And Standards Conflicts - Disclosure

Maria is a financial consultant with a diverse set of clients. Recently, she received a lucrative offer from a company that produces investment software. The company has proposed to pay her a commission for every client she refers to them. Maria is excited about the potential earnings but is unsure if she should accept the offer. According to the CFA Institute Code of Ethics and Standards of Professional Conduct, what should Maria do regarding this potential conflict of interest?

Accept the offer without disclosing it to her clients, as it is a private arrangement.

Accept the offer, but disclose it to her clients so they are aware of her potential financial gain.

Decline the offer, as accepting commissions from third parties always poses a conflict of interest.

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