If Jane Dawson suspects a violation of state securities law, what is her obligation according to the CFA Institute Standards?

In this scenario, Jane Dawson is faced with a potential violation of state securities law. According to the CFA Institute Standards, particularly the Standards of Professional Conduct, members and candidates are required to act with integrity and professionalism. However, the standards also emphasize the importance of understanding the legal responsibilities and the scope of one's obligations.

If Jane suspects a violation but is not in possession of sufficient evidence or her suspicion does not meet a threshold that necessitates reporting, she is not legally obligated to report the concern to any entity. The CFA Institute encourages ethical behavior and protections for clients and the market, yet it also recognizes that suspicion does not require immediate reporting without concrete evidence. Reporting obligations typically arise when there is a confirmed and substantial breach of law or ethical standards, rather than mere suspicion. Therefore, in situations where evidence is lacking or the suspected violation does not meet specified criteria, the corresponding action is to refrain from reporting.

This aligns with the principle of maintaining client confidentiality and protection against unwarranted allegations, which could arise from incorrect or insufficiently substantiated claims. Thus, choosing not to report under these circumstances is consistent with upholding ethical standards, focusing on due diligence in handling potential legal violations appropriately.