Example 1

After attending an analysts' briefing, you decide to re-evaluate your research report on Horton Industries. You conclude that the company is no longer a "buy" but is instead a "strong buy." The report is scheduled for release to your clients next week but you call several large clients to inform them of this change. You have not treated all clients fairly.

Example 2

An analyst tells a client that he will soon issue a recommendation. He violates the standard because he should send the information to all clients before discussing it with any specific client(s).

Example 3

Just 30 minutes before the close of the market, Huntington Biomedical releases a report indicating that EPS for the upcoming quarter will be materially lower than previously expected and that sales growth for the firm will also be below expectations for the next four quarters. You only have three clients with significant positions in Huntington. You contact each of those clients and two of them direct you to liquidate their holdings in the firm immediately. The third client elects to hold her position. Even if you have other clients with small positions in this firm, you have treated all clients fairly. You have shown preference to clients with greater concern about the news release.

Example 4

An analyst's employer low-balls earning projection for company XYZ. The analyst is confident that the earnings should be higher, but goes along with the firm when issuing his own recommendation. Then he passes his real estimate to his large clients. He violates the standard by not sharing his recommendation with all clients and not treating all clients fairly.

Example 5

An analyst, Jessica, follows the mining industry. She finds that a small mining house has just signed some significant deals with companies she researches or follows. She then investigates it further and decides to write a report recommending the company purchase. While the report is still in the draft stage, Jessica organizes a breakfast for her biggest and best clients and discusses this small company with them. At the breakfast she tells her best clients that she has a buy recommendation on the report (which will be released in three days). Jessica has violated the standard because she disseminated investment recommendation information that was contained in a research report to her best clients before the report had been disseminated to all her clients fairly.