GOt it right but I am just wondering, you enter into a derivative contract say put options to hedge against a potential decrease in stock value that your husband ownes. Your compliance dept does not require disclosures for derivative contracts and by engaging in this transaction you cannot affect the stock price in any way. Is it a violidation? Are you putting client at a disadvantage?
I remember this question and I said it’s not a violation, because she did NOT need prior approval for derivatives…
This question asked about compliance w/the Research Objectivity Standards, which state that trades in family members’ accounts can’t be made before a research report comes out.
steph96 Wrote: ------------------------------------------------------- > This question asked about compliance w/the > Research Objectivity Standards, which state that > trades in family members’ accounts can’t be made > before a research report comes out. ypu this was a violation …think about it this way she was def trying to front run the report in an indirect way …not allowed …she should jus take the loss …God i love CFa ethics
pimpineasy Wrote: ------------------------------------------------------- > steph96 Wrote: > -------------------------------------------------- > ----- > > This question asked about compliance w/the > > Research Objectivity Standards, which state > that > > trades in family members’ accounts can’t be > made > > before a research report comes out. > > > ypu this was a violation …think about it this > way she was def trying to front run the report in > an indirect way …not allowed …she should > jus take the loss …God i love CFa ethics Makes more sense thinking of it like this… Thanks man.