Mila is a successful financial adviser, registered to give advice in Aotearoa New Zealand. The majority of Milas long-term client base is high-net-worth individuals, including a world-renowned pianist named Kimberly. Ninety-seven-year-old Kimberly visits Milas office to talk about her investments monthly and enjoys drinking peppermint tea during their meetings.

During her previous visit, Mila notices Kimberly seems confused about concepts she normally understood, and is second-guessing investment decisions she made confidently in the past. She also appears to be growing increasingly frail, using a frame rather than her usual walking stick.

For todays meeting, Kimberly attends with her son, who introduces himself as his mothers caregiver. Kimberly refuses her peppermint tea (following a remark from her son) and requests Mila move 65% of her $15 million portfolio from its current moderate-risk investment allocation into two new investments: a new cryptocurrency her son enthusiastically describes as the next Bitcoin and becoming majority shareholder in her sons business venture. She assures Mila that she has discussed the matter with her son and that he knows what hes talking about when it comes to these tech things.

Mila wonders if Kimberlys health is declining and suspects her son may be taking advantage of his mothers diminished capacity. She is also concerned Kimberlys long-standing habits are being controlled/influenced by her son. After the meeting, Mila contacts a government agency charged with administering assistance to the elderly and does not make any changes to Kimberlys investment portfolio.

Has Mila engaged in misconduct by not making changes to the portfolio and/or reporting Kimberlys personal situation? Milas actions are:

A. appropriate Mila is working to protect Kimberlys interests and is acting within the law.

B. inappropriate Mila has violated Kimberlys right to confidentiality and therefore her duty under the CFA Institute Standards of Professional Conduct by contacting the government agency.

C. appropriate IF Mila speaks separately with Kimberlys son in his role as Kimberlys caregiver to advise against changing the investment directives.

D. inappropriate instead of contacting the government agency, Mila should have contacted a close family member or trusted professional, such as Kimberlys attorney or accountant, about her concerns.