What must a CFA member do when clients' interests conflict with their own?

When clients' interests conflict with those of a CFA member, the member is obligated to act in the best interest of the clients. This duty is rooted in the core principles of the CFA Institute's Code of Ethics and Standards of Professional Conduct, which emphasize loyalty, prudence, and the need to place clients' interests ahead of their own.

By prioritizing the interests of clients, a CFA member ensures that they are fulfilling their fiduciary duty, which involves a commitment to act with care, skill, and loyalty. This duty is designed to foster trust and confidence in the professional relationship and to protect the clients' financial well-being. Ultimately, acting in the best interest of clients helps maintain the integrity of the financial markets and the professional standards upheld by CFA charterholders.

Choosing personal interests or failing to disclose conflicts would undermine this trust, while refraining from all financial risks does not address the necessity of managing and prioritizing client interests in the presence of a conflict.