Responsibilities to Employers in Investment Strategy

Medium Professional Standards Application Responsibilities To Employers

Mark is a senior investment advisor at Global Wealth Solutions. Recently, he was given a challenging task of managing a new client's substantial investment portfolio. During the initial meetings, the client expressed a preference for aggressive growth strategies, which Mark believes may not align with the client’s risk tolerance based on his analysis of their financial situation.

Despite his reservations, Mark is keen to impress this client to secure more future business for the firm. To enhance his proposal, he considers including speculative investments that could exceed the client’s original risk profile. Mark is aware that this approach might not be in the best interest of the client.

Which of the following actions is MOST consistent with Mark’s responsibilities to his employer while also adhering to the professional standards?

Proceed with the aggressive growth strategy as requested by the client, ensuring a high return to enhance the firm's reputation.

Conduct a thorough risk assessment and present both aggressive and conservative investment options to the client, maintaining transparency.

Decline to manage the portfolio based on his belief that the client's request is unsuitable without providing alternative solutions.

Hint

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