Rachel is a CFA charterholder working as a senior investment advisor at a prestigious wealth management firm. She has a long-standing relationship with Mrs. Harrison, a high-net-worth retiree who relies heavily on Rachel's investment advice for her retirement portfolio. Mrs. Harrison expresses anxiety about the stock market's volatility and requests that Rachel shift her entire portfolio into low-risk securities, fearing that further market fluctuations may jeopardize her financial stability. Rachel is aware that such a significant shift could result in missed growth opportunities that could beneficially impact Mrs. Harrison's long-term financial goals.
Faced with this request, Rachel considers her obligations under the CFA Institute's Code of Ethics and Standards of Professional Conduct. She understands that her primary duty is to act in the best interest of her client while also ensuring that her advice is consistent with the client's overall investment objectives and risk tolerance. At the same time, she must consider whether or not the requested action directly aligns with the ethical requirements set forth by her profession.