Ethics doubt

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Gigaloo

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If an analyst changes recommendation on a stock or discovers a new growth stock and only informs the clients who hold the stock or for whom the stock is suitable, is he/she in violation of fair dealing ?
Is a member required to disclose modest gifts like a pen or a shirt from clients ?
Is a member required to do due diligence on firm approved third party research?
If the employer allows it, can a member take part in a IPO issue provided it is not over subscribed ? Correct me if I am wrong, members cannot participate in an oversubscribed IPO even if the employer allows it.
Thanks.
 
Members are required to follow their firm’s disclosure policy. If your firm require full disclosure, you have a disclose Pen and Shirt gift even though they are modest.
Yes, additional due dilligence may be required on the third party research provider even though the firm approved of them.
An employee can take part in an IPO if not oversubscribed, and if oversubscribed, an employee cannot take part in it.
On changes in recommendation, am not too sure, but i think he will have to make the new findings public to investors and potential investors.
 
If an analyst changes recommendation on a stock or discovers a new growth stock and only informs the clients who hold the stock or for whom the stock is suitable, is he/she in violation of fair dealing?
I just read ethics & my understanding is yes - they should inform all clients.
 
If an analyst changes recommendation on a stock or discovers a new growth stock and only informs the clients who hold the stock or for whom the stock is suitable, is he/she in violation of fair dealing ?
I came across another similar question. XYZ finds stock which is not correlated with interest rates and makes a report for clients with high fixed income allocations. He believes the stock will be of little value for investors with major allocations in equity. The clients with high fixed income allocations are the only ones to see the report.
I chose violation of fair dealing as the report was not forwarded to all the clients. But the answer was no violation. Any inputs?
 
I could be mistaken but i think the key here is that it says “he believes the stock will be of little value for INVESTORS with major allocations in equity” i think because these are just random investors and not his clients/prospective clients then it does not violate Fair dealing. if the question were to have said “he believes the stock will be of little value for clients with major allocations in equity” then yes myabe it would be a violation. I remember reading in the book that it stated something along the lines of investors being able to pay for the report themselves/do it themselves.
Thats just my input, maybe wait and see if others agree with me or not (S2000 magician?)
 
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