beneficial ownership

CFA Level III
#1

If my wife has an account with my company and I have a beneficial ownership in that account, why would they hold her trades until all other trades are done? I thought that they should treat all clients equally. My beneficial ownership is incidental, no?

#2

shouldnt

#3

Question in Schweser Volume 2 says that there is no violation if trades are held in which I have beneficial ownership even if my wife is a regular client. Confused!

#4

So am i

#5

Tell me if I am wrong but I think: If it is a family memebr’s account other than spouse, you have no beneficial ownership and you trade it with others. If wifey’s account then you wait until other trades go thru.

#6

If you have a bene. owenship on your wife’s account, you wait.

#7

is wife the only situation where there is ben. ownership? what about kids?

#8

also beneficial… assuming they’re still you’re dependents…

#9

^I would think same for the kid, if you have beneficical ownership on any accounts, you should let client’s trade go first.

#10

perfection

#11

For Conflict of Interests: “For the purposes of Standard VI(A), members and candidates beneficially own securities or other investments if they have a direct or indirect pecuniary interest in the securities; have the power to vote or direct the voting of the shares of the securities or investments; or have the power to dispose or direct the disposition of the security or investment.”

#12

Just use common sense – the ethical thing to do is to take care of your clients first, and only then take care of accounts that can make you and your family money.

#13

For Standard VI(B) “For purposes of the Code and Standards, a member or candidate is a “beneficial owner” if the member or candidate has a direct or indirect personal interest in the securities.”

#14

What if uncle is a your client?

#15

or what if your father is your client?

#16

As long as you don’t have a beneficial ownership on your father, uncle account. They have to be treated as regular client===>fair treatment.

#17

ws Wrote: ------------------------------------------------------- > As long as you don’t have a beneficial ownership > on your father, uncle account. They have to be > treated as regular client===>fair treatment. Check what CFAI defenition of beneficial ownership is

#18

actually i get it now. your wife account is benficial cause in cause of divorce you will be entitled to half (if no prenup and stuff) your father and uncle might or might not be beneficial. Your kids are beneficial if you own their accounts :). If they own their own accounts they are just regular clients i suppose

#19

Put it this way, if they live under your roof —> Consider it yours.

#20

bigwilly Wrote: ------------------------------------------------------- > Put it this way, if they live under your roof —> > Consider it yours. Where does it say so? I mean is there anything like that in ethics? about household?