Good Ol' Ethics

  1. Which of the following statements clearly CONFLICTS with the recommended procedures for compliance presented in the Standards of Practice Handbook? (A) For confidentiality reasons, personal transactions should not be compared to those of clients or the employer unless requested by regulatory organizations. (B) Prior approval must be obtained for the personal investment transactions of all employees. © Personal transactions include transactions in securities owned by the employee and members of his or her immediate family and transactions involving securities in which the employee has a beneficial interest. (D) Investment recommendations may be changed by an analyst without prior approval of a supervisory analyst. 2. Which of the following statements is a recommendation of the Standards of Practice Handbook with regard to personal investing? (A) Restrictions on participation in an IPO of equity or equity-related securities. (B) Disclosure of all holdings in which the employee has a beneficial interest. © Pre-clearance of all trades. (D) All of the Above.

1.A 2.D

A,D

A, D. I’ve seen Q1 before and the answer is A, but I still have no idea why. Why would respecting client privacy CONFLICT with the SOPH?