markCFAIL Wrote: ------------------------------------------------------- > Two things - > > 1.)it doesn’t say fee paying anywhere. > 2.)even if it did, i do believe that if you have a > beneficial interest in the account, fee paying or > not, clients and employer come first. Whether fee paying or not, as long as she is a client, A is the correct answer. Don’t make assumptions. What if she is not fee paying but she provides legal counsel to the firm in exchange for the fee?
mark: How can you have clients if you give free service? Client obviously means fee paying
You can 100% absolutely have pro bono accounts. In any event if you have a beneficial interest in an account, even if it’s your brothers, aunts, friends, neighbors, inbred stepchild, you have to let your firm and other clients come first (even if the inbred step child pays fees).
easy there my fellow analist yes a client can be both fee and non fee paying non fee paying makes it a bit more tricky actually since the standards says explicitly ( from memory so someone please feel free) that all fee paying clients are to be treated the same…
I chose A I think the distinction here is the fact that it says in the question: “Rock’s wife has an account at Best Trade Co” indicating that she is a client, fee paying or not. A beneficial owner only needs to wait if they are trading in a personal account - meaning not as a client of the particular research. only then would Rock need to wait. Since the wife is a client, again fee paying or not, she is allowed to be privy to the research and therefore can trade immediately. Continuation of BPdulog’s std 6B quote: …Family accounts that are client accounts should be traeted like any other firm account and should neither be given special treatment nor be disadvantaged because of family relationships.
Members or candidates may undertake transactions in accounts for which they are a beneficial owner only after their clients and employers have had adequate opportunity to act on a recommendation. Personal transactions include those made for the member’s or candidate’s own account, for family (including spouse, children, and other immediate family members) accounts, and for accounts in which the member or candidate has a direct or indirect pecuniary interest, such as a trust or retirement account. Family accounts that are client accounts should be treated like any other firm account and should neither be given special treatment nor be disadvantaged because of the family relationship. If a member or candidate has a beneficial ownership in the account, however, the member or candidate may be subject to preclearance or reporting require- ments of the employer or applicable law. (Level III Volume 1 Ethical and Professional Standards , 4th Edition. Pearson Learning Solutions 132).