Prioritizing Client Interests Over Personal Gain

Easy Cfa Institute Code And Standards Conflicts - Priority Of Transactions

Tom, a charterholder, has received an investment opportunity that could significantly benefit his financial position. He also has a discretionary account with his brokerage firm where clients’ funds can be actively invested without prior approval for each trade. Tom is aware that this new investment opportunity has a high potential for returns but might create a conflict of interest with the funds in his brokerage account.

According to the CFA Institute Code of Ethics and Standards of Professional Conduct, which principle should Tom prioritize in this situation?

Tom should prioritize the investment opportunity for his personal account before managing the discretionary account.

Tom should ensure he places his clients’ interests above his own before considering the new investment opportunity.

Tom should disclose the potential conflict to his clients and allow them to decide on the investment.

Hint

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