Ethical Responsibilities in Client Interactions

Medium Cfa Institute Code And Standards Responsibilities - Conduct

As a CFA charterholder, you are required to uphold and promote the integrity of the profession. During a client meeting, you discover that a colleague has made misleading statements about a financial product that could influence investor decisions. The colleague insists that the statements are necessary to make the product appear more attractive.

Your responsibility as a CFA charterholder is tied to the CFA Institute Code of Ethics and Standards of Professional Conduct, particularly the focus on dealing fairly and honestly with clients. Which of the following actions would best align with your ethical responsibilities under the CFA Institute Code and Standards?

Report the colleague's misleading statements to your superiors and recommend additional training on compliance.

Support your colleague’s approach, convincing yourself that such statements are commonplace in sales.

Remain silent, assuming that your involvement in the issue could damage your relationship with your colleague.

Hint

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