Ethics question_Disclosure of Conflicts his, recently, interview, investment

bluejazzy

A question from Schweser Qbank:
Abner Flome, CFA, is writing a research report on Paulsen Group, an investment advisory firm. Flome’s brotherinlaw holds shares of Paulsen stock. Flome has recently interviewed for a position with Paulsen and expects a second interview. According to the Standards, Flome’s most appropriate action is to disclose in the research report:
A) his brotherinlaw’s holding of Paulsen stock and that he is being considered for a job at Paulsen.
B) that he is being considered for a job at Paulsen.
C) his brotherinlaw’s holding of Paulsen stock.
The correct answer was B) that he is being considered for a job at Paulsen.
The possibility of employment with Paulsen creates a potential conflict of interest which Flome must disclose. Standard VI(A) Disclosure of Conflicts does not require disclosure of his brotherinlaw’s ownership of Paulsen stock.
My question is, why the disclosure of his brotherinlaw’s ownership of Paulsen stock is not needed?

ogoluwa

Abner is not a beneficial owner of the stock… therfore, no need to disclose… I need to brush up a tad, but I believe beneficial ownership is limited to immediate family and…. family/friends who reside w/ you.