“An analyst provides asset management services for a nonprofit organization and in return gets free membership in the organization. His supervisor in the organization calls him and tells him to buy a certain stock for the portfolio based upon insider information. The analyst objects, but the supervisor says this is what they have always done and sees no reason for changing now. The analyst complies with the request. With respect to Standards IV(A), Loyalty to Employer, and II(A), Material Nonpublic Information, the analyst violated:
a) only Standard II(A) that prohibits insider trading.
b) both Standards IV(A) and II(A).
c) only Standard IV(A) requiring duty of loyalty. ”
the correct answer is option (a). I understand that part about material non public info. but my question is why not option (b) which includes Loyalty to employer. Under guidance about Whistleblowing, in order to protect clients or integrity of the capital market, one can violate this rule about loyalty to employer. by using MNI, you are violating the integrity of the capital market. the analyst should have rejected and dissociated himself from the job at least.
thanks in advance |
发表于 2013-4-11 09:26
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