Maintaining Professional Independence

Medium Cfa Institute Code And Standards Professionalism - Independence

As a newly registered financial analyst, you are evaluating a potential investment firm to join. During your research, you discover that the firm has recently amended its compensation structure. The new structure provides significant bonuses to analysts based solely on the volume of trades they execute. You remember that adherence to the CFA Institute Code of Ethics and Standards of Professional Conduct emphasizes the importance of independence and objectivity in the decision-making process.

Considering this scenario, which of the following actions would best uphold your professional independence?

Focus on executing as many trades as possible to maximize personal bonus.

Evaluate each investment opportunity on its own merits, regardless of the potential impact on personal bonuses.

Encourage clients to frequently trade to generate more commissions for the firm.

Hint

Submitted8.7K

Correct7.6K

% Correct87%