Ethical Dilemma of Proprietary Information Usage

Very Hard Ethical Decision-making Professionalism

Maria is a senior portfolio manager at a large investment firm, and she has been with the firm for over a decade. Recently, she was offered a lucrative position at a competing firm, which she finds intriguing. However, Maria also believes that her current firm offers more stability and a positive work environment, factors that lead her to decide to stay.

After making her choice, Maria is approached by a colleague who is interested in forming a new investment start-up. This colleague suggests that Maria could use her access to proprietary information and networks from her current firm to benefit their new venture. Maria is tempted by the prospect of financial success but is uncertain about the ethical implications of using her current firm’s resources.

What should be Maria's course of action to align with the CFA Institute's Code of Ethics and Standards of Professional Conduct?

Accept the offer to help her colleague in forming the start-up, as it could benefit her financially.

Decline to assist her colleague, as using proprietary information for personal gain would violate ethical standards.

Consult with the compliance department of her firm to determine if it is permissible to assist her colleague.

Hint

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