Example 1

You receive a news release that a small firm in the industry that you follow has obtained a major contract with a multinational firm. The contract will double sales for the small firm. You note that the small firm's stock price has already increased from $12 to $13. You immediately submit an order to buy 1,000 shares. After your order is confirmed, you send an email advisory to all clients summarizing the news and suggesting that this is a buying opportunity. This is a clear violation of this standard. Clients had no opportunity to act on this information prior to your personal trading.

Example 2

An analyst tells her father about a tender offer. She does not trade for her client until her father has made the trade. She violates this standard by placing her father's interest above her clients'.

Example 3

An analyst maintains an account in his wife's maiden name at another firm. Using that account, he often buys hot issues in which his clients cannot participate. He violates the standard by trading for his wife before his clients can acquire shares. He also should disclose the trading for the account in his wife's name to his employer.

Example 4

David is a portfolio manager. He manages the retirement account established with the firm by his parents. David does not trade for this account until all other accounts are traded. He violates this standard by discriminating against his parents' account. As fee-paying clients to the firm, his parents should be treated the same as any other clients.

Example 5

A member manages a portfolio of 20 clients. Included in this portfolio is the portfolio of a family member. The member may NOT first allocate transactions to all the other clients in the portfolio and then only to the family member, as this would be unfairly prejudiced against the family member. The family member's account must be treated like a normal client account.