Fair Dealing and Personal Investments

Very Hard Cfa Institute Code And Standards Duties - Fair Dealing

Andrew is a financial advisor who manages a portfolio for several clients, focusing on equities and mutual funds. He receives an attractive investment proposal from a company he is personally invested in, which he believes could offer substantial returns. Considering the potential benefits of this investment, Andrew is tempted to allocate a larger portion of his clients' funds into this proposal before discussing it with his clients. Which of the following actions would best align with the CFA Institute's Code of Ethics regarding fair dealing?

Andrew should present the investment opportunity to his clients and recommend it, emphasizing his personal investment in the company as a rationale.

Andrew should disclose his personal investment to his clients and evaluate their needs and preferences before making any recommendations.

Andrew can invest in the proposal for himself before discussing it with his clients, as he believes it to be a good opportunity.

Hint

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