Which action should a CFA charterholder avoid to maintain professional integrity?

To maintain professional integrity, a CFA charterholder should avoid accepting undisclosed referral fees. This practice can create significant ethical concerns, as it could compromise objectivity and transparency in professional dealings. Accepting referral fees without disclosure may lead to conflicts of interest, where the charterholder's decision-making is influenced by financial incentives rather than the best interests of clients.

Such undisclosed arrangements can erode trust between the charterholder and clients or the public, violating the CFA Institute's Code of Ethics and Standards of Professional Conduct, which emphasizes the importance of acting with integrity, transparency, and in the best interests of clients. Upholding these ethical principles is critical for maintaining credibility and professionalism in the finance industry.

In contrast, engaging in community service, while potentially competitive with peers, can be considered a positive action that promotes goodwill and social responsibility. While competition among industry peers is a natural part of any profession, it does not inherently compromise ethical standards. Exposing conflicts of interest, when done transparently, aligns with the commitment to integrity and accountability, as it addresses potential ethical dilemmas rather than concealing them.