Ethics and Professional Standards
Ethical duties
This domain tests integrity, confidentiality, client priority, fair dealing, suitability and market-abuse controls. Mongolian securities professionals must not trade or tip on material non-public information (MNPI) and must manage conflicts transparently.
Core standards
- Put client interests first and disclose conflicts that cannot be avoided.
- Use MNPI only for its intended purpose; do not trade, tip or recommend.
- Separate research from investment banking through information barriers.
- Gifts and entertainment must be proportionate and disclosed under policy.
- Fair dealing means no selective disclosure to favored clients.
Worked example
An analyst at a Mongolian broker learns from a mining company CFO, before public release, that assay results are far above expectations. The analyst must not trade the shares, must not tip colleagues or clients, and should report the contact to compliance. Using public reserves data, transport costs and peer multiples to form a view is legitimate mosaic analysis; the unreleased assay result is MNPI and cannot be used.
Traps
- Calling MNPI “market gossip” to justify trading.
- Confusing mosaic analysis with misappropriation.
- Accepting a lavish gift that creates a conflict.
- Front-running client orders.
- Disclosing a client’s identity or holdings without consent.