Ethics-Personal Trading

According to Q.26 on EOC, there is no restriction on firm’s employees conducting transactions that differ from current recommendations of firm (e.g selling a stock when the firm has a ‘Buy’ Rating) as long as the sale does not disadvantage clients BUT then in the curriculum in Section 7 (in Personal Investments and Trading) it says that firms must prohibit covered employees and immediate families from trading in a manner contrary to employee or firm’s most recent published recommendation except in cases of extreme financial hardship.

I am unsure how both of these laws are in line with each other. Can anyone explain this?

CFAI research objectivity standards says in the ‘personal investments and trading’ category, that it is NOT allowed to trade contrary to the firm recommendation, EXCEPT for extreme financial hardship. EoC Q26 refers to the code and standards.

^ only if they’re a ‘covered employee’

am still confused. so does it mean that…

‘covered employee’ cannot trade at all during the restricted period.

for not covered employee, they cannot trade buy when recommendation is sell, and vice versa?

Covered employee cannot trade at all during the “restricted” period. However if a covered employee is “allowed” to trade during - perhaps outside the restricted period, he CANNOT buy when firm recommends sell.

so is covered employee allowed to BUY when the firm recommend BUY?

i am thinking no matter BUY or SELL, it is still an disadvantage to clients…anyone can clarify?