1、Case-1：Edvard Stark

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  • Violations of Standards
    • Standard III(B)-Duties to Clients：Fair Dealing
    • Standard III(C)-Duties to Clients：Suitability
    • Standard IV(B)-Duties to Employers：Additional Compensation Arrangements
    • Standard V(A)-Investment：Diligence and Reasonable Basis

  • Actions Required

    • Stark should either offer each of his clients the chance to buy Meerine tokens directly from him and allocate tokens in proportion or not to sell any of his tokens to them.
    • Stark should properly access each client’s circumstances to decide whether the client should invest in Meerine.
    • Stark should disclose his mining activity and potential earnings to his company; He also needs to disclose to his clients his conflict of interest.
    • Stark should complete an evaluation report of Meerine.

      2、Case-2：Subath Agarway

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  • Violations of Standards

    • Standard I(A)-Professionalism：Knowledge of the Law
    • Standard I(B)-Professionalism：Independence and Objectivity
    • Standard VI(A)-Conflicts of interest：Disclosure of Conflicts
  • Actions Required
    • Agarway needs to stay informed about relevant legal limitations.
    • Agarway needs to create a company-approved due diligence process.
    • Agarway’s personal investments need to be disclosed to his company.
      • If the companies Agarway invests in are also listed on the CrowdWisdom’s platform, Agarway also needs to disclose his investment to CrowdWisdom’s users.