Responsibility to Employer Regarding Proprietary Information

Easy Professional Standards Application Responsibilities To Employers

As a senior analyst at Global Investment Advisors, Sarah has been asked to mentor a junior analyst, John, who has just joined the firm. During their first meeting, John asks Sarah for permission to bring in details from his previous employer’s proprietary research when preparing a report for a client. Sarah is uncertain about how to respond.

In considering her responsibility to her employer, Sarah recalls the CFA Institute's Code of Ethics and Standards of Professional Conduct, particularly concerning the use of confidential information. What should Sarah do in this situation?

Allow John to use the proprietary research as long as he does not disclose specific names.

Tell John that he cannot use any proprietary research from his previous employer.

Suggest that John summarize the proprietary research without revealing confidential details.

Hint

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