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CFA Level 1
Ethical and Professional Standards

Investment Strategy Adjustment for Client Risk Profile

Very Hard Cfa Institute Code And Standards Responsibilities - Conduct

Maria is a charterholder who has been recently hired as an investment advisor at a wealth management firm. Upon reviewing her client list, she notices that one of her clients, Mr. Thompson, has a higher risk tolerance than the investment strategy she had initially developed for him. Despite her inclination to stay true to her original plan, she sees a potential opportunity in a high-risk stock that aligns better with Mr. Thompson's risk profile.

In her firm, there is a policy stating that all investment recommendations must be communicated transparently and in the best interest of the client. Maria is unsure whether altering the investment strategy to include the high-risk stock would fall under the firm's policies. In her situation, what should Maria prioritize based on the CFA Institute Code of Ethics and Standards of Professional Conduct?

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