What is the correct course of action for Konkol Company regarding its new portfolio valuation methodology?

The correct course of action for Konkol Company regarding its new portfolio valuation methodology is to discuss the methodology openly with clients. Openness and transparency are fundamental principles in ethical practices, especially in finance and investment services. By sharing the valuation methodology with clients, Konkol Company enables them to understand how their portfolios are being assessed, thus enhancing trust and fostering a stronger relationship.

Moreover, discussing the methodology openly allows clients to ask questions and seek clarifications, which can result in more informed decision-making and better compliance with regulatory requirements. Transparency not only demonstrates professionalism but also mitigates the risk of potential misunderstandings or conflicts of interest that could arise from clients being unaware of how their investments are being valued.

This approach aligns with ethical standards and best practices in investment management, where clients have the right to know how their assets are evaluated and how performance measures are derived.