Assessing Professionalism and Independence in Board Positions

Medium Cfa Institute Code And Standards Professionalism - Independence

As a CFA charterholder, Jane Smith works as a financial analyst for a large investment firm. Recently, she received an invitation to sit on the board of a non-profit organization that is aligned with her personal interests in environmental sustainability. The organization is not a client of her firm's investment services. However, she is concerned about how her involvement might be perceived by current and potential clients of the firm.

Given this situation, what should Jane consider regarding her independence and professionalism as per the CFA Institute Code of Ethics and Standards of Professional Conduct?

Jane may accept the position on the board without any concerns since the organization is not a client of her firm.

Jane should decline the position if there is a potential for her firm to later consider the organization as a client.

Jane can accept the position, but she must disclose her involvement to her firm's compliance department to ensure that there are no conflicts of interest.

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