Ethical Concerns in Client Loyalty

Easy Asset Manager Code Loyalty To Clients

Alice is an asset manager at XYZ Investments, a firm known for its commitment to ethical standards. One day, a potential client approaches Alice with a substantial investment opportunity. The client reveals they have had ongoing negotiations with a rival firm and may still consider using them.

In an effort to win over the client, Alice discusses confidential investment strategies used by a current client of XYZ Investments, thinking this information could impress the potential client.

What ethical concern arises from Alice's actions regarding loyalty to clients as set by the CFA Institute's Asset Manager Code?

Alice is acting within her rights to share information that she believes benefits the potential client.

Alice's actions demonstrate a breach of her duty of loyalty to her current client by disclosing confidential information.

Alice is fulfilling her duty to act in the best interest of her firm by trying to secure the new client.

Hint

Submitted2.4K

Correct2.3K

% Correct95%