Responsibilities to Employer: Ethical Dilemma in Use of Proprietary Software

Hard Professional Standards Application Responsibilities To Employers

As a portfolio manager at a large investment firm, you recently discovered that one of your direct reports has been using proprietary trading software for personal investments while employed at the firm. The software provides a competitive advantage in predicting market trends and has been developed with significant resources from your employer. You are uncertain about how to proceed. According to the CFA Institute's Code of Ethics and Standards of Professional Conduct, what should be your immediate course of action to uphold your responsibilities to your employer?

You should confront the employee directly and demand they cease using the software for personal trades.

You should report the situation to your supervisor or compliance department to determine the appropriate action.

You should ignore the situation unless it impacts the firm's performance directly.

Hint

Submitted6.8K

Correct4.8K

% Correct71%