Disclosure of Consulting Conflict of Interest

As a financial analyst at a mid-sized investment firm, you are highly regarded for your research insights and your ability to provide sound investment recommendations. Recently, a company whose stock you have been recommending has offered you a lucrative consulting contract. Your firm's policy requires that any potential conflicts of interest be disclosed prior to proceeding with such agreements.

You are faced with a dilemma: should you disclose your new consulting relationship to your clients, and how should you handle this situation to comply with the CFA Institute Code and Standards?