Jordan's Responsibilities to Clients

Jordan is a charterholder working as a portfolio manager at a boutique investment firm that specializes in socially responsible investing (SRI). Recently, Jordan received an unsolicited research report from a financial analyst who works for a third-party investment research firm. The report recommends buying a large stake in a company that is involved in renewable energy, a sector that aligns well with the firm's SRI mandate.

However, the report also includes undisclosed potential conflicts of interest, as it suggests the analyst has ties to the company being recommended, which Jordan is unaware of. Compelled by the report's alignment with the firm’s values and in an effort to enhance client returns, Jordan decides to recommend this investment to his clients without performing additional due diligence.

This situation raises ethical concerns regarding Jordan's responsibilities. According to the CFA Institute's Code of Ethics and Standards of Professional Conduct, what should Jordan have prioritized before making this recommendation to his clients?