This standard states that for a member the investment transactions for his clients and employers should take priority over his personal investment transactions.

Examples of Violation

• Example 1: An analyst has come across a shining stock. Before making a purchase recommendation for the stock to his clients, he purchases the stock in his personal account. This is a violation of the standard.
• Example 2: A portfolio manager, who manages funds for several of his clients and also his own parents, first allocates any new IPOs to other clients, and any remaining shares to his parents account. He actually does so to avoid any blame for favouring his parents. However, he is violating the standard because his parents are also paying clients like others to his firm.