Ethics clarification business, president, committee, his

ShooterMcCFA

Q1) Reference: CFAI V1- Reading 2 (page 42: Example 1)

- Material nonpublic information

A president of a publicly traded family business decides to tell a family member (who is also a committee member of the firm) of his decision to sell the business. The family member passes this info to other distant members of the family. A distant family member breaks the news to his broker, who decides to buy the shares of the firm.

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The comments section on page 42 claims that the distant family member (Staple) and the broker are the only ones in violation. I would have thought the family member employed by the firm, who passed the info onto an outside family member not employed by the firm would be in violation - as well as all of the distant family members, and not just Staple.

The info from all the way up to the president got to Staple through a channel of other relatives. A common sense says those relatives are also accomplices, so to speak. Or is there a certain regulation (apart from CFA) where the guilty party (the broker) and the immediate accomplice (Staple) are the only violators. Can someone please clarify.
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Q2) Reference: Schweser Book 1: page 77- Q10

The answer to this question claims that "..factual data from a recognized statistical reporting service need not be cited" - in this case the Federal Reserve.

The question is which organizations are considered 'recognized statistical reporting service'? SEC comes to mind ....any others?


Thanks.