CFA Level I · CFA Level I Exam · Guidance for Standard VI: Conflicts of Interest
Standard VI(B) Priority of Transactions most likely requires that investment transactions for clients and employers:
Standard VI(B) requires that client and employer transactions take priority over transactions in which the member or candidate is the beneficial owner, so personal trades must never come ahead of, or disadvantage, client trades.
- Abe disclosed to regulators
- Bhave priority over transactions in which the member is the beneficial ownerCorrect
- Cbe executed only after the member has traded personally
Explanation
Standard VI(B) states that investment transactions for clients and employers must have priority over investment transactions in which a member or candidate is the beneficial owner. Trading personally first is front-running and reverses the required priority.
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