Independence in Professional Relationships

Very Hard Cfa Institute Code And Standards Professionalism - Independence

As an investment professional, you are aware of the importance of maintaining independence and avoiding conflicts of interest. You manage a portfolio for a client who runs a hedge fund, and you often receive invitations to exclusive hedge fund events sponsored by the client's fund. These events provide networking opportunities that could benefit your career significantly. However, you know that attending these events might be perceived as a conflict of interest due to your professional relationship with the client fund.

Given this scenario, consider the following statements regarding your ethical obligations under the CFA Institute Code of Ethics and Standards of Professional Conduct:

You may accept invitations to these events as long as you disclose them to the client.

You should decline all invitations to hedge fund events sponsored by your client to maintain your independence.

You can attend the events if they are open to all investment professionals, not just clients.

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