Exam CFA® Level 1 topic 1 question 44 discussion

Standard VII of the AIMR (Association for Investment Management and Research) Standards of Professional Conduct deals with priority of transactions. This standard states that client transactions must have priority over transactions in which the analyst is a beneficial owner, and the analyst should not engage in securities transactions that create an actual or potential conflict of interest with the analyst's clients. Additionally, the analyst must take steps to avoid conflicts of interest, such as disclosure and obtaining prior approval from the analyst's supervisor or the firm's compliance department. The purpose of this standard is to ensure that the interests of the analyst's clients come first, and that the analyst is not using inside information or other advantages for personal gain at the expense of the client.