Navigating Conflicts of Interest: Sam's Ethical Dilemma

Sam is a senior financial analyst at a well-established investment bank. Recently, he has been working on a project that involves underwriting bonds for a company with which he has a personal friendship. As part of his role, Sam is required to review and provide insight into the company's financials for potential investors. During a discussion with his supervisor, Sam is asked whether he believes he can remain objective given his close relationship with management at the company.

On one hand, Sam feels confident in his abilities to compartmentalize his personal feelings and provide an unbiased assessment. However, he understands the potential for a conflict of interest due to his personal ties. In deciding how to proceed, Sam reflects on his ethical responsibilities as a CFA charterholder.