Question 1 of 30
A portfolio manager, Anya Sharma, at a prominent investment firm, Zenith Investments, is suspected of engaging in personal trading activities that may be in conflict with her fiduciary duty to clients. Specifically, there are indications that Anya has been trading in securities shortly before placing similar trades for her clients, potentially benefiting from the price movement caused by the client orders. This activity has raised concerns among Zenith\'s compliance officers, who are now tasked with determining the appropriate course of action. Anya manages portfolios for high-net-worth individuals and institutional clients, and any breach of fiduciary duty could have significant financial and reputational consequences for Zenith. Considering the ethical and regulatory implications, what is the most appropriate immediate action Zenith Investments should take?
Immediately launch a thorough investigation into Anya's trading activities, focusing on potential breaches of fiduciary duty and conflicts of interest, and take appropriate disciplinary action based on the findings, including potential reporting to regulatory authorities.
Issue a formal warning to Anya, reminding her of her fiduciary duty and requiring her to disclose all personal trading activities going forward, without conducting a formal investigation unless further suspicious activity is detected.
Temporarily reassign Anya to a non-client-facing role while conducting a limited internal review of her trading activities, focusing primarily on compliance with internal trading policies rather than potential breaches of fiduciary duty.
Publicly announce a review of all portfolio managers' trading activities to demonstrate transparency and commitment to ethical conduct, while delaying any specific action regarding Anya until the broader review is completed.

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