medium · CFA Level I ethics
An investment committee at Vesper Foods decides to add Oakridge Capital to the firm's 'Approved Buy List' for all discretionary accounts. Before the list is published, a committee member buys Oakridge Capital shares for her personal account, noting that she 'drafted the purchase order a week ago.'
Does this satisfy Standard VI(B)?
- No, because the timing of execution must follow the dissemination to clients.
- Yes, because the decision to buy was independent of the committee's final approval.
- Yes, as long as she discloses the trade to her supervisor within 24 hours of execution.
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