Ethical Decision-Making in Investment Analysis

Medium Professional Standards Application Ethical Decision-making

Emily is a senior financial analyst at a well-known investment firm. One day, she is approached by a colleague, Mark, who suggests that they collaborate on an investment analysis project. During their discussions, Mark reveals that he has access to non-public information about a company they are both considering investing in. Emily is aware that using this information would violate the CFA Institute's Standards of Professional Conduct.

Faced with this situation, Emily must decide how to proceed. She knows that Mark believes that the potential benefits of acting on the information outweigh the ethical implications.

What should Emily do?

Proceed with the investment analysis using the non-public information, as it could lead to high returns.

Refuse to collaborate with Mark and report his actions to compliance, as using non-public information is unethical.

Continue the discussion with Mark but suggest that they rely solely on publicly available information instead.

Hint

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% Correct83%