Understanding Responsibilities to Employers: Ethical Considerations

Medium Professional Standards Application Responsibilities To Employers

As a newly appointed research analyst at a large investment firm, Maria is tasked with preparing a series of detailed reports to support the firm's investment strategies. As part of her role, she becomes aware that her previous employer, a small asset management company, has recently implemented a similar investment approach that Maria had discussed in a private meeting with their portfolio managers.

Maria also knows that the strategy is not yet publicly available information. Concerned about potential repercussions, she opts to use her knowledge of the strategy to enhance her reports for her current employer without informing them of her prior association.

Which action best reflects Maria’s responsibilities to her current employer while adhering to the CFA Institute's Code of Ethics and Standards of Professional Conduct?

Maria should inform her current employer about her prior employer's strategy before using it in her analysis.

Maria can use her knowledge of the prior employer's strategy without disclosing it, as long as it benefits her current employer.

Maria should refrain from using any knowledge from her previous employer to ensure she does not breach confidentiality.

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