Priority of Transactions in Ethical Standards

Very Easy Cfa Institute Code And Standards Conflicts - Priority Of Transactions

As a CFA charterholder, you are working on a fixed income portfolio for clients. You have also recently opened a personal investment account where you are considering buying bonds similar to those that your clients already hold. You are aware that the CFA Institute Code of Ethics and Standards of Professional Conduct emphasizes the duty to place clients' interests before personal interests.

Which of the following actions should you prioritize in order to adhere to the CFA Institute's Code of Ethics regarding potential conflicts of interest?

You can buy the bonds for your personal account first, as it is your private investment.

Notify your clients about your intention to invest in the same bonds and only proceed after their consent.

Avoid investing in those bonds for your personal account while managing the clients' portfolios.

Hint

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