Ethics question & financial hardship

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Hi guys,
I just did the Schweser Ethics CCs, Question 19. on page 81. Basically the question, is whether an analyst can trade against the recommendation of his firm.

The solution says (C) is correct, i.e. only one action is a violation and trading AGAINST the recommendation of the firm is allowed.

Now I am sure, one is only allowed to trade for his own account against the rec. of a company only in financial hardship.

Am I wrong? I looked up Level II books and original CFAI, I was not able to find anything.. Please help me finding my ethical peace.

Thanks in advance.
 
If you trade because you need cash, you will have to sell positions that you would recommend buying (the reason why you had them at all).
So that’s no problem. It’s only problematic if you sell recommended securities to buy other ones. This would contradict your recommendation.
 
The example is: “W. sells 500 shares of T (comp has a buy recommendation) and W buys 200 shares of H and the following day issues a buy recommendation on H”.
According to the solution, only the latter part is a violation. However, for me its also the sale of the shares.
 
Ok, I thought that was a violation. I guess if there is no front running, you are basically free to trade since it’s your company’s recommendation and not yours. But these are the reasons, why I never score ethics with 100% in mocks, no matter how much I study for it.
 
Is there nobody with an idea? I am sure this has been covered but I am unable to find any source.. would be much appreciated.
 
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