Disclosure of Conflicts of Interest

Very Hard Cfa Institute Code And Standards Responsibilities - Conduct

As a portfolio manager at a large investment firm, you are required to disclose any potential conflicts of interest to your clients. During a meeting with a client, you mention that you own shares in a tech company that is currently under analysis for a potential investment. You also reveal that you have a personal connection with the CEO of this company. After the meeting, your supervisor reminds you to ensure that all breaches of the CFA Institute's Code of Ethics and Standards of Professional Conduct are reported. In this scenario, which of the following best describes your responsibilities regarding the disclosure of your personal connection and ownership of the shares?

You are only required to disclose your share ownership, as your connection to the CEO does not impact your financial recommendation.

You must disclose both your ownership of the shares and your personal connection to the CEO, as both represent potential conflicts of interest.

You do not need to disclose either, since the analysis of the company is in the preliminary stages.

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