Understanding Insider Information in CFA Ethics

Very Easy Cfa Institute Code And Standards Responsibilities - Reference To Cfa

As a CFA charterholder, you are obligated to adhere to the CFA Institute's Code of Ethics and Standards of Professional Conduct. These guidelines are designed to ensure that you act with integrity, competence, and respect toward all stakeholders. Consider the following situation:

Your client, a long-time friend, has requested that you provide them with insider information on a stock that you are aware of due to your professional experience. You know this situation violates the Code of Ethics. Which of the following options reflects your best course of action?

Inform your client that providing insider information is against the CFA Institute's Code of Ethics.

Agree to share the information because the client is a friend.

Ignore the request as it doesn’t concern you.

Hint

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