A question from the ethics section - hopefully someone can help? As a broker/investment advisor you receive an execution only order from a client which you believe may be based on inside information. What is the best course of action based on the ethical and professional standards?
Since it is “which you believe may be” situation,but not sure,I think the best course of action should be seeking outside (like 3rd party’s) opinion; If it is the “you sure” situation,first,keep away or disassociate,then,ask for 3rd party’s opinion.
consult his/her supervisor or compliance officer to ascertain if the order is based on inside information and that it is material non public before executing the order.
oops didn’t complete the previous post, … if it is confirmed that the info is material and non public, then he/she should not execute the order
that’s great - thanks for your help!