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Jennifer Lively, CFA, manages accounts for WS Capital. When transacting any trades in her client’s accounts, Lively ensures that she does not trade in her mother’s account, who is also a client, until all the other clients have been given the opportunity to trade. Is Lively’s approach to trading in her mother’s account in line with Standard VI (B) – Priority of Transaction?

A No, Lively should treat her mother’s account like any other client account.

According to the Standard VI (B) – Priority of Transaction, family members who are also clients should be treated as client account and should not be at a disadvantage. CFA Level 1, Volume 1, Study Session 1, Reading 2 – Code of Ethics and Standards of Professional, LOS 2c: Explain the ethical responsibilities required by the Code and Standards, including the sub-sections of each Standard.

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