Disclosure of Conflicts of Interest in Recommendations

Very Easy Cfa Institute Code And Standards Conflicts - Disclosure

As a new financial analyst, you are reviewing the code established by the CFA Institute on ethical conduct. You understand that one of the key components of this code involves managing conflicts of interest. During a client meeting, you realize that you have a personal investment in a company that you are recommending to your client. To adhere to the CFA Institute's standards, what should you do?

Keep the investment undisclosed to maintain rapport with the client.

Disclose the investment to the client before making the recommendation.

Advise the client to invest but wait until you can sell your shares.

Hint

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