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You said: A. You're not concerned. After all, she is in an excellent position to help the firm find an economical way to comply with the new requirements

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No, I'm afraid that's not right.

It doesn't matter whether she can help this firm comply with the new regulations or not.

What's important here is that she is going to use her public position (as an SGE) for private gain by using inside information to help the firm.

Now, let's examine a few other laws and regulations...