Conflict of Interest and Ethical Practices in Investment Recommendations

Easy Cfa Institute Code And Standards Duties - Loyalty And Care

As a financial analyst, Jason manages a portfolio for a group of high-net-worth clients. One day, he discovers that one of the clients is involved in a business venture that presents a good investment opportunity. However, Jason knows that this investment might compete with other clients' interests in his portfolio. He is contemplating whether to recommend this investment to the client.

According to the CFA Institute Code of Ethics and Standards of Professional Conduct, which principle should guide Jason's decision regarding this situation?

He should prioritize recommending the investment to the client as it could yield high returns.

He should disclose the potential conflict of interest to all affected clients and provide recommendations based on what is in their best interest.

He should ignore the business venture since it could lead to a conflict with his firm’s policy.

Hint

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