Answers are, A, and C. In the second question I don’t see any violation for disclosure to clients. Baker must acquire shares for her mutual fund first and, only after doing so, acquire them for her husband’s account, even though she might miss out on participating in new issues via her husband’s account. She also must disclose the trading for her husband’s account to her employer because this activity creates a conflict between her personal interests and her employer’s interests [Standard VI(A)—Disclosure of Conflicts]. – straight from standards.
Now it makes sense to me. Conflict of interest with employer and not clients. Was not thinking about employer.
I go with D – HOW DO WE KNOW IF SHE DISCLOSED IT ALREADY OR NOT?