Prioritizing Client Transactions: Ethical Compliance

Very Hard Cfa Institute Code And Standards Conflicts - Priority Of Transactions

Edward is an investment analyst at a well-regarded asset management firm. He has recently been granted access to a private placement offering for a promising startup. The firm instructs him to prioritize client transactions over his own personal investment decisions. However, after carefully analyzing the startup's business model and financials, he believes the offering is too good to pass up and decides to invest personally before disclosing it to his clients. He is confident that he will later inform them when he discusses market opportunities.

In this scenario, which action best reflects compliance with the CFA Institute's Code of Ethics and Standards of Professional Conduct regarding prioritization of client transactions?

Edward should invest personally in the offering first as it is not yet widely available to the public.

Edward should prioritize informing his clients about the offering before making a personal investment.

Edward can disclose his investment after the fact once he has invested, as long as he believes it benefits his clients.

Hint

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