Okay, Ethics has gotten to me and its so contradictory even though I did this Ethics in Level 1. In this question the answer says that public dissemination of material nonpublic information is necessary according to Standards of Practice Handbook. Whereas, the CFAI book says that public dissemination of material information should not happen. Can someone clear me on this, its really so confusing me.
key word in Item 3 -> is “reasonable” Item 2 is definitely wrong - because it is not only for direct reports … but for everyone in the firm they are associated with.
The answer is given for this. If public dissemination does not lead to breach of duty of loyalty and confidentiality, then you can do so.
It’s not necessary, it’s a reasonable effort standard. So, the member/candidate should make a reasonable effort to disseminate the information, but he or she is not required to do so and must not do so should dissemination cause a breach of duty (e.g. confidentiality to employer).