easy · CFA Level I Ethical and Professional Standards
An investment manager at Pinion Logistics discovers that a colleague is systematically misrepresenting the firm's historical performance to prospective clients. The manager reports the finding to the firm's compliance officer, but no action is taken.
According to the guidance for Standard I(A), the manager's next most appropriate step is to:
- Immediately report the colleague's activities to the local securities regulator.
- Dissociate from the activity by documenting the objection and refusing to participate.
- Continue working at the firm as long as the manager is not directly involved in the fraud.
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