I just wondering whether the client’s of well-know analyst received the recommendation prior to public dissemination(TV show) and act with it, would be a violation of the Non public material information. thanks for the help
I think so unless he’s the sole client of the analyst…
If the analyst has such a good reputation then the recommandation has an impact (materiality) and this information has not been made available widely (non public)
The analyst would be guilty of not disseminating the information in an equitable way.
so, you means whether the violation should be constituted is depends on who is our client, if we are responsible for disseminating recommendation to the public, so our client becomes the public, we should responsible for the public’s interest, any front running, even for our fee paying client is a violation? because the handbook case( the TV show）, the interpretation emphasis the interviewer is not client then it is a violation. but the interpretation seemed to miss the point to our client is actually the general public when we are providing information to the general market. am I correct? thanks
Wé seem to agree that the information is material and non public.
My point is that clients have the right to be informed first in an equitable manner. There are three possible configurations in my mind:
If the analyst has à single client and this client uses the information before the general public everything is OK.
If the analyst has more than one client and a client uses the information knowing it has not been dissiminated to the other clients or the general public there will be a violation.
If the general public is the client, an individual using the information before dissemination will be in violation.
I think that in the case of à TV show one can argue that the public is the client. The analyst is there to deliver something new and of value, not some stale inf
Hope this help.
Regards.