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CFA Level 2
Ethical and Professional Standards

John's Ethical Dilemma in Conflict of Interest

Hard Professional Standards Application Responsibilities To Employers

John, a financial analyst at Wealth Management Corp, has been working on a significant project involving the assessment of potential investment opportunities for high-net-worth clients. During his analysis, he discovers that one of the potential investments is linked to a company that his firm has a contentious relationship with due to previous disputes over fees and services. Additionally, John has a personal investment in the company that could benefit from the project’s positive outcome.

Faced with this situation, John hesitates to disclose his personal investment and his firm’s history with the company in his presentations and recommendations to senior management. He justifies his decision by stating that he believes his analysis was thorough and objective. What should John do in order to uphold his responsibilities to his employer?

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