Question of the Week – Ethical and Professional Standards

There
are two potential code issues here:

Priority of Transactions and Investment transactions. Investment transactions
for clients and employers must have priority over investment transactions in
which a Member or Candidate is the beneficial owner.

According
to this line, Asmita must purchase KANE for her clients before purchasing it
for herself.

Knowledge of the Law. Members and Candidates
must understand and comply with all applicable laws, rules, and regulations
(including the CFA Institute Code of Ethics and Standards of Professional
Conduct) of any government, regulatory organization, licensing agency, or professional
association governing their professional activities. In the event of conflict,
Members and Candidates must comply with the more strict law, rule, or
regulation. Members and Candidates must not knowingly participate or assist in
and must dissociate from any violation of such laws, rules, or regulations.

The
law says that Asmita cannot own KANE if her clients do. Because there are
different requirements, Asmita must follow the stricter practice and not invest personally in KANE.