Please answer the following question based on the CFA Standards of Practice Handbook. Government officials approach Amanda Lin, the portfolio manager for Smith Company's pension plan, to examine pension fund records. They tell her that Smith's corporate tax returns are being audited and the pension fund is being reviewed. Two days earlier, Amanda had learned in a regular investment review with Smith officers that potentially excessive and improper charges were being made to the pension plan by Smith. Amanda consults her employer's general counsel and is advised that Smith has probably violated tax and fiduciary regulations and laws.

What's the best actions for Amanda regarding the activities of Smith officers?

As a CFA, Amanda should inform her supervisor of these activities, and her employer should take steps, with Smith, to remedy the violations. If that approach is not successful, Amanda and her employer should seek advice of legal counsel to determine the appropriate steps to be taken. Amanda may well have a duty to disclose the evidence she has of the continuing legal violations and to resign as asset manager for Smith.

As a CFA, Amanda should report all the activities to CFA institute and work with FBI.