Question

You are a portfolio manager. One client walked into your office and asked for advice on...

You are a portfolio manager. One client walked into your office and asked for advice on best risk-reward based portfolio for his/her retirement plan. You knew there are portfolios better in other brokers’ holding than your company has. But you advised him/her to buy the one from your company. Is there any ethical violation? Why? Why not?
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Answer #1

No, there are no violations because the portfolio manager is also entitled to work in the betterment of his own broking house.

When the client had asked for his advice for best risk reward best portfolio, then he should have been working for his company and providing the best out of his company rather than glorifying others, so he has worked in the best interest of his company and without a conflict of interest he has tried to work for the best interest of the client also, so there is no ethical violation on the part of the portfolio manager because he was working true to his company and trying to make it's product grow and expand.

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