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Raul Garcia, CFA, an investment manager, is in an advisory relationship with Beta Corporation. One day he receives a call from the local police, who require some information about Beta Corporation, as they suspect it to be involved in money laundering. Garcia gives them whatever information they required. At the time of the call, Garcia was sitting with his coworker, Henry, who overheard the conversation. After leaving Garcia’s office, Henry immediately issued a sell recommendation for Beta Corporation to all his clients. Which of the following statements is least accurate?

A Henry violated Standard II (B): Market Manipulation.

• Garcia violated Standard III (E), as he allowed confidential information about his client to reach a coworker.
• Henry violated Standard II (A) by acting on the material, non‐public information.
• Henry’s actions did not result in the manipulation of the market.

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