A CFP® professional served as the president and owner of an investment advisory firm and had primary responsibility for the financial and investment services offered by the firm. The firm held a private offering to raise money for working capital, marketing, expansion of present facilities, and operating expenses. The CFP® professional recommended that clients purchase shares in the private offering. Four clients purchased $2,550,000 worth of shares of the firm, which represented 12.5% of the company.

What rule(s) of conduct were broken? Explain the rule(s) and how it was broken in the case study.

How might you handle this situation differently?

Case Study : Financial Conflict of Interest