Ethical Reporting Responsibilities

Medium Professional Standards Application Responsibilities To Employers

As a compliance officer at a financial services firm, Linda discovers that a senior manager has been providing misleading information to clients regarding the performance of certain investment products. Linda is aware that this practice is against the principles set forth by the CFA Institute. She feels it is her duty to report this behavior to the firm's ethics committee. However, she hesitates, fearing that she might lose her job for bringing this to light.

What should Linda do in this situation to align with her responsibilities to her employer and adhere to ethical standards?

Confront the senior manager directly and request that they correct the information provided to clients.

Immediately report the situation to the firm's ethics committee without hesitation.

Ignore the issue since it may not affect her directly and could jeopardize her job.

Hint

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Correct6.4K

% Correct73%