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CFA Level 2
Ethical and Professional Standards

Appropriate Action for Conflict of Interest

Hard Professional Standards Application Conflicts Of Interest

In the world of financial advisory, conflicts of interest can heavily influence the integrity of a professional's advice. Consider a scenario where a CFA charterholder, Jane, serves as an investment advisor for a family business. The business is planning to acquire a competitor and seeks Jane's firm for assistance with the acquisition process. Unbeknownst to Jane, her brother is a major shareholder in the competing firm. Jane's fiduciary duty to act in the best interests of her client may be compromised by her personal connections.

Given this scenario, which of the following describes the most appropriate action Jane should take in response to this potential conflict of interest?

Hint

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