I like this. You allocate IPO shares to all your clients, but defer allocation to your parents’ account, who are also among your clients, to any remaining shares. This way you avoid any accusation of favoring your parents. Are you in any violations?
yes… they are your client first, parents later. so it is a violation… you are violating the fair dealing rule…
What if you own 20% of your parent’s account?
If its your parents account and they pay fees just like other clients they should be treated as such. If you have any ownership it would be a violation
I would think you owning 20% of your parent’s account and then being the client manager is a serious conflict of interest first, and then talk about IPO allocations later.
If you have beneficial ownership in the account *and* your firm has preclearance and reporting requirements for personal transactions, you may have to preclear the trades and report the transactions. That’s the offical answer. But cpk raises another issue, where does it say (which standard) says that you cannot maintain an account for yourself?
You can have an account, but i think it needs to be completely separate from what goes and where you work, everything would need to be precleared and report everything.
Shouldn’t this issue be clearly discussed in the 176-page Ethics handbook?
any example about preclearance? thanks justinkc Wrote: ------------------------------------------------------- > You can have an account, but i think it needs to > be completely separate from what goes and where > you work, everything would need to be precleared > and report everything.
Not sure on the specific dates. But usually every trade you want to make needs to be authorized by the compliance department. If it is a covered company you cant make trades 30 days before a report of a stock and not for 5 days after a report. Something like that,