What obligation do members and candidates have regarding transactions in which they have a beneficial ownership?

Members and candidates have a clear ethical obligation to prioritize client transactions over their own when they have beneficial ownership in a transaction. This principle is grounded in the commitment to act in the best interest of the client, which is a key tenet of fiduciary duty in the investment management industry.

When individuals in the investment field engage in transactions that could potentially conflict with the interests of their clients, it is essential to avoid any actions that may lead to the perception of self-dealing or preferential treatment. By ensuring that client transactions take precedence, members and candidates uphold the integrity of the financial markets and reinforce trust with clients.

This obligation helps maintain a level playing field for all market participants and preserves the confidence that clients place in investment professionals. It reflects the ethical standard that client interests must always come first, thus fostering a relationship based on trust and accountability. By adhering to this standard, members and candidates demonstrate their commitment to ethical behavior in their professional conduct.