Question
Rick Tew is an Investment Advisor with Blacksheep Securities. A friend Frank Dux informs him that Frank's company, Bujinkan Electronics Limited (BEL), is having a
Rick Tew is an Investment Advisor with Blacksheep Securities. A friend Frank Dux informs him that Frank's company, Bujinkan Electronics Limited (BEL), is having a great year in sales and when the quarterly earnings are reported next week, thy will be received by the public with enthusiasm. BEL trades on the TSX and Rick, as well as many of Rick's clients, hold chares in the company. Then Rick gets back to the office, he puts in an order to buy 200 additional shares of BEL for himself and emails his clients who hold shares, recommending they get in touch with him to increase their holdings. He also contacts a select few of his other clients with a buy recommendation for BEL. One client in particular Mariko Hatsumi, likes to trade options and because the 2 months-to-expiry option on BEL is trading in the money, Rick recommends she buys some calls. By entering an order for himself (a pro order), what has Rick violated?
a) Due diligence b) Priority of client's interests c) Respect for client's assets d) Confidentiality
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