▲ 3 r/CFA
L2 ETHICS Question ??
Carl Hirayo, CFA, recently joined Summit Investments as a portfolio manager. Hirayo
plans to participate in Tarragon Petroleum’s IPO for both his personal account and his
clients' accounts. He obtains preclearance for his own participation because the IPO is
not fully subscribed at that time. The offering turns out to be fully subscribed at the
time of issue and Summit receives all requested shares. Hirayo allocates these shares on
a pro rata basis among his subscribing clients and his own account.
With respect to the IPO, does Hirayo violate the Standard relating to priority of
transactions?
A. No
B. Yes, because he allocates shares to himself
C. Yes, because he applied for the IPO for his personal account
u/Excellent-Bug2790 — 9 days ago