Zestt

918, the code and standards apply only to CFAI members and candidates, who in this situation could encourage the firm to publicly disseminate the material nonpublic information, but otherwise must notify compliance and cannot take investment actions based on the information.
Now, regarding the client you mentioned, who presumably is not a candidate or member, the code and standards do not apply but the law is applicable. Insider trading is illegal in many places. Go ask Martha Stewart and Mark Cuban about that.
“If a member or candidate determines that information is material, the member
or candidate should make reasonable efforts to achieve public dissemination of
the information. This effort usually entails encouraging the issuer company to
make the information public. If public dissemination is not possible, the
member or candidate must communicate the information only to the designated
supervisory and compliance personnel within the member or candidate’s firm
and must not take investment action on the basis of the information.”
handbook, p.40.