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Gregory Robinson, CFA, works as a research analyst at a brokerage firm. His wife, Laura Robinson, CFA, is an analyst at another firm. One morning, Robinson elects to stay at home by the side of his ill wife. He receives a call from James, an investment banker, who informs him that the two largest mining companies that Robinson covers are getting taken over at a 50% premium to their current market values. This information has not been released to the public yet. Laura overhears the entire conversation and immediately purchases the stock for her clients. Standard II (A): Material Non‐Public Information has most likely been violated by:

A All three of them.

• All three parties have violated Standard II (A).
• Mr. Robinson violated the standard because he failed to prevent the transfer and misuse of material, non‐public information.
•James had a duty to keep this non‐public material information to himself.
•By trading on material non‐public information, Mrs. Robinson has also violated the Standard.

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