From handbook. I didn’t realize the standard applies to random people. Also, how far down the line does the guilt follow? The treasurer is responsible for telling her daughter, and daughter passed it on too! Example 1. Frank Barnes, the president and controlling shareholder of the SmartTown clothing chain, decides to accept a proposed tender offer and sell the family business at a price almost double the market price of its shares. He describes this decision to his sister (SmartTowns treasurer), who conveys it to her daughter (who owns no stock in the family company at present), who tells her husband, Staple. Staple, however, tells his stockbroker, Alex Halsey, who immediately buys SmartTown stock for himself. Comment: The information regarding the pending sale is both material and nonpublic. Staple has violated Standard II(A) by communicating the inside information to his broker. Also, Halsey has violated the standard by initiating the transaction to buy the shares based on material nonpublic information.
Her husband’s name is Staple? That can only mean his last name is Palin…
Bump Case in point; you can violate the code without really knowing about it or even being a member of the CFAI. Enforcement would be difficult and this likely WOULD NOT be a violation of Standard I(A), however, it is still considered a violation.