Ethical Considerations of Nonpublic Info Usage

Very Hard Cfa Institute Code And Standards Integrity - Nonpublic Info

Julia is a portfolio manager at a reputable investment firm. One afternoon, during a casual conversation with a friend who works at a company within her portfolio, she learns about a pending product launch that has not been publicly disclosed. Julia considers using this nonpublic information to adjust her firm's investment in the company based on her belief that the launch will significantly improve the company's market position.

According to the CFA Institute Code of Ethics and Standards of Professional Conduct, what should Julia do regarding the nonpublic information she has received?

Utilize the information to make recommendations for trading in the company’s stock to her clients.

Inform her compliance department about the information and refrain from trading until the information is publicly available.

Discuss the potential implications of the product launch with her clients to help them make informed decisions.

Hint

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