Capital Group’s Code of Ethics now prohibits ICO participation

The code of ethics of Capital Group (founded in 1931) has been updated, as evidenced from the website of the United States Securities and Exchange Commission.

A new amendment includes initial coin offerings (ICOs): company associates must not be connected with this kind of enterprise, the prohibition applies even to their close relatives. The latter measure is likely caused by the classic corruption scheme when the mastermind registers a close relative as an owner or founder or conducts operations with the help of his next of kin.

This prohibition is not used widely, although the current rules of the United States Commodity Futures and Trading Commision still do not allow the employees to trade Bitcoin futures even after the lift of the ban on crypto trading, and South Korean officials have been advised not to trade cryptocurrencies, although in the governmental environment of South Korea, this “advice” is perceived as an actual order.

There might be other restrictions in big investment companies we do not know about, as not all internal corporate policy documents and contract terms are always available online. And while the measure might seem like it’s undermines the rights of employees, this can actually prevent many cases of insider trading.

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