CFAI Ethics Q 81: beneficial interest correct, accounts, interest, his

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“If the IPO is oversubscribed, he excludes his wife’s discretionary, non-fee paying account so that he is not accused of bias when allocating the oversubscribed IPO”
Does he violate the CFAI Standards when he allocates oversubscribed shares?
A. No
B. Yes, b/c he should allocate the oversubscribed IPO across all discretionary accounts
C. Yes, b/c he should treat his wife’s account the same as other discretionary accounts and include it in the oversubscribed IPO allocations
“A is correct. When an issue is oversubscribed, allocations cannot be made to accounts where members and candidates have beneficial interests; client order must be filled first”
How is this any different from the case with aunt? What if it is the person’s son? How do you know if he has to treat the account like any other or trade for them last?