Ethics questions from CFAI that might be wrong - R2, page 172

[thespacebar]

79. Danko is dealing with a firm FTI which engages in illegal distribution of confidential info. The CFA standard tells us to dissociate from such activity (terminate relationship with FTI) but the book solution says that “keeping the info confidential and not use it in the analysis” is sufficient.
81. Oversuscribed IPO issues. The wife is also a client but solution says that alocations cannot be made to accounts where members and candidates have a beneficial account.

 

[Swaption11]

Not sure about 79 but with 81 the wife is always considered an extension of you. You share community property most likely so her gain is your gain.

 

[S2000magician]

Swaption11 wrote:Not sure about 79 but with 81 the wife is always considered an extension of you. You share community property most likely so her gain is your gain.

Beneficial interest.

 

[pocketofkrypton]

For #81, is it not because the wife’s account is non-fee-paying? If the wife’s account was fee-paying, she would need to be subscribed shares as well.

 

[knapers]

exactly pocketofkrypton, that’s what makes the difference

 

[tjcfa]

Yes, gotta keep it confidential.