Do the CFA Codes and Standard require someone who works in an investment-related firm to disclose the transactions from their personal account? Let’s assume their personal investing activities do not involve any inside information and conflict with employer and client.
From my personal experience, anytime you attempt to buy equities, you must get approval from compliance. For CFA purposes, there should be a restricted list set up that lists equities that you cannot trade in.
Yes. This is addressed under Standard II.A Integrity of Capital Markets
Standard II.A focuses on trading on material non-public information. My question is about purely personal investing transactions without using inside information. So I don’t think II.A applies. I can’t seem to find a section that gives a clear answer on this.
Standard II.A definitely applies here. You need to look at the big picture. We know that standard II.A is based on material non-public information - but ask yourself, how would a firm manage insider trading risk associated with employees personal investing? The answer is - get employees to disclose personal investing transactions. This is not conjecture on my part, it is specifically addressed within the standards of practice handbook.
You definitley have to dislcose personal investing activity. At least your client definitely ought to know what you have bought/not bought for your personal portfolio. I dont know about disclosures relating to accounts in which the member is a beneficial owner. Look into that. I havent read Ethics for year. I always hated studying it. Too many little details.