This situation seem familial to anyone who's been reading the news lately?
"Example 4: Madison & Lambeau, a well-respected broker/dealer, submits a weekly
column to Securities Weekly magazine. Once published, the column usually affects
the value of the stocks discussed. Ron George, an employee of Madison &
Lambeau, knows that Securities Weekly is published by Ziegler Publishing, for which
his nephew is the night foreman. George�s nephew faxes him an advance copy
of the weekly column before it is printed. George regularly trades in the securities
mentioned in the Madison & Lambeau column prior to its distribution, and
to date, he has realized a personal profit of $42,000 as well as significant profits
for his clients.
Comment: George has violated Standard II(A) by trading on material nonpublic
information. George�s nephew has also violated the standard by communicating
the information that causes George to trade."
Looks like the CFA study materials are most definately up-to-date and relevant to our times!
"Example 4: Madison & Lambeau, a well-respected broker/dealer, submits a weekly
column to Securities Weekly magazine. Once published, the column usually affects
the value of the stocks discussed. Ron George, an employee of Madison &
Lambeau, knows that Securities Weekly is published by Ziegler Publishing, for which
his nephew is the night foreman. George�s nephew faxes him an advance copy
of the weekly column before it is printed. George regularly trades in the securities
mentioned in the Madison & Lambeau column prior to its distribution, and
to date, he has realized a personal profit of $42,000 as well as significant profits
for his clients.
Comment: George has violated Standard II(A) by trading on material nonpublic
information. George�s nephew has also violated the standard by communicating
the information that causes George to trade."
Looks like the CFA study materials are most definately up-to-date and relevant to our times!