Conflict of Interest and Personal Investments

Emily is an equity research analyst at a well-respected investment firm. She has a strong track record in her research, but recently, she made a private investment in a startup that is a competitor to one of the companies she covers. Emily failed to disclose this investment to her employer's compliance department. After a few weeks, she publishes a buy recommendation for the competitor's stock, which leads to a significant increase in its share price.

Emily's colleague, Mike, is aware of her investment and is concerned whether her actions violate the CFA Institute's Research Objectivity Standards. Mike reviews the code and reflects on potential violations regarding Emily's personal investments. What should Mike consider regarding Emily's situation?