Weiss Group Code of Ethics


PREAMBLE AND APPLICABILITY

The Code of Ethics has been adopted by Weiss Group, Inc. and its subsidiaries (together, "Weiss") to provide principles and rules for Weiss personnel, including officers, directors, employees and independent contractors of Weiss. These parties are referred to in this Code as "employees" or "personnel" of Weiss, and persons or entities for whom Weiss provides services, including subscribers to Weiss publications, are referred to as "customers". References in this Code to "services", "activities" or "professional services or activities" by Weiss employees mean the full range of services and activities that employees may engage in on behalf of customers or otherwise in connection with their job duties.

Weiss is currently comprised of a parent company and four subsidiaries that provide the following products and services:

  • Weiss Research, Inc. is a publisher of print and electronic financial newsletters which includes, but is not limited to, Safe Money Report which follows financial institutions and investments, UnDiscovered Stocks which focuses on finding promising companies, and Profits Without Borders, a newsletter on international investing; and also publishes many electronic newsletters for more aggressive investors and traders;
  • Weiss Ratings, Inc. is a nationally recognized financial company ratings agency which publishes financial safety ratings and data on 16,000 financial institutions including most of the nation's insurance companies, HMOs, banks and brokerage firms as well as investment ratings on stocks and mutual funds;
  • Weiss Capital Management, Inc., along with its subsidiary Weiss Funds, Inc., is engaged in the business of managing assets of private individuals, pension plans, trust accounts, institutions and investment companies, and as a registered investment advisor, is committed to helping investors achieve their investment goals through a full range of financial services, including mutual funds; and
  • The Weiss School, Inc. is a private educational institution for students in pre-kindergarten through eighth grade, using a specialized curriculum and teaching style designed to help all students succeed in developing the knowledge and skill needed to become independent thinkers, and to maturate the ability to communicate, assemble and apply new knowledge, create ideas and to reason.

This Code of Ethics should be kept on hand for easy reference. You are asked and encouraged to raise questions, criticisms or comments about the Code. Suggestions for changes or additions are welcome and should be directed to the Weiss Compliance Officer.

You should be thoroughly familiar with the principles, procedures and policies as set forth in this Code, and each Weiss employee will be provided a copy of the Code and required to certify that he or she has received and read the Code by signing and returning the form of acknowledgment attached hereto as Exhibit A.

This Code is intended to be revised or supplemented from time to time. It is the responsibility of the holder of this Code to see that his or her copy is maintained in an up-to-date fashion by inserting new material as instructed, and by returning an acknowledgment for such updates as requested. Each Weiss employee also must:

  1. Know and understand the contents of this Code and use it in day-to-day activities.
  2. See that new employees and trainees, including independent contractors, are provided with a copy of the Code.
  3. Ensure that any supplements to the Code are read and understood.

It is imperative that all Weiss personnel uphold the highest ethical standards of conduct. Honest and equitable conduct is not only necessary to avoid potential legal, regulatory or firm-imposed sanctions, but will enhance the individual's as well as the firm's reputation in our industries and with customers and with the other entities and persons with which we deal.

COMPOSITION AND SCOPE

The Code of Ethics consists of three parts: Part I - Principles, Part II - Rules and Part III - Resolution of Ethical Conflicts.

The Principles (Part I) are statements expressing in general terms the ethical and professional ideals that Weiss personnel are expected to display. As such, the Principles are aspirational in character but are intended to provide a source of guidance for Weiss personnel. The comments following each Principle further explain the meaning of the Principle.

The Rules (Part II) provide practical guidelines derived from the tenets embodied in the Principles. As such, the Rules describe the standards of ethical and professionally responsible conduct expected of Weiss personnel in particular situations.

Finally, the Procedures (Part III) provide the means for each Weiss employee to resolve conflicts that may arise in the interpretation and application of the principles and rules set forth in the Code.

This Code of Ethics does not undertake to define standards of professional conduct of Weiss personnel for purposes of civil liability. Due to the nature of an employee's particular job duties, certain rules may not be applicable to that employee's activities. For example, employees engaged solely publishing activities are not subject to certain rules pertaining to investment advisory services. Therefore, each employee is obligated to determine what responsibilities he or she may have in the particular circumstances of job duties and in other circumstances that may arise, and each employee is obligated to meet those responsibilities.

PART I - PRINCIPLES

Principle 1 - Integrity

A Weiss employee shall offer and provide services with integrity. Weiss personnel may be placed by customers in positions of trust and confidence. The ultimate source of such trust is an employee's personal integrity. In deciding what is right and just, a Weiss employee should rely on his or her integrity as the appropriate touchstone.

Integrity demands honesty and candor that must not be subordinated to personal gain and advantage. Within the characteristic of integrity, allowance can be made for innocent error and legitimate difference of opinion; but integrity cannot co-exist with deceit or subordination of one's principles. Integrity requires a Weiss employee to observe not only the letter, but also the spirit of this Code of Ethics.

Principle 2 - Objectivity

A Weiss employee shall be objective in providing professional services to customers. Objectivity requires intellectual honesty and impartiality. It is an essential quality for any professional. Regardless of the particular service rendered or the capacity in which a Weiss employee functions, a Weiss employee should protect the integrity of his or her work, maintain objectivity, and avoid subordination of his or her judgment that would be in violation of this Code of Ethics.

Principle 3 - Competence

A Weiss employee shall provide services to customers competently and maintain the necessary knowledge and skill to continue to do so in those areas in which the employee is engaged. One is competent only when he or she has attained and maintained an adequate level of knowledge and skill, and applies that knowledge effectively in providing services to customers. Competence also includes the wisdom to recognize the limitations of that knowledge and when consultation or customer referral is appropriate. Each Weiss employee shall make a continuing commitment to learning and professional improvement.

Principle 4 - Fairness

A Weiss employee shall perform professional services in a manner that is fair and reasonable to customers, principals, partners and employers, and shall disclose any conflicts of interest in providing such services. A "conflict of interest" means any circumstances, relationships or other facts about an employee's own financial, business, property and/or personal interests that will or reasonably may impair the employee's rendering of disinterested advice, recommendations or services. Fairness requires impartiality, intellectual honesty and disclosure of conflicts of interest. It involves a subordination of one's own feelings, prejudices and desires so as to achieve a proper balance of conflicting interests. Fairness is treating others in the same fashion that you would want to be treated and is an essential trait of any professional.

Principle 5 - Confidentiality

A Weiss employee shall not disclose any confidential customer information without the specific consent of the customer unless in response to proper legal process. A customer, by seeking the services of Weiss, may be interested in creating a relationship of personal trust and confidence with a Weiss employee. This type of relationship can only be built upon the understanding that information supplied to Weiss will be confidential. In order to provide the contemplated services effectively and to protect the customer's privacy, Weiss employees shall safeguard the confidentiality of such information.

Principle 6 - Professionalism

A Weiss employee's conduct in all matters shall reflect credit upon Weiss. Because of the importance of the services rendered by Weiss personnel, there are attendant responsibilities to behave with dignity and courtesy to all those who use those services, fellow personnel, and those in related professions. A Weiss employee also has an obligation to cooperate with fellow Weiss personnel to enhance and maintain Weiss's public image and to work jointly with other Weiss personnel to improve the quality of services. It is only through the combined efforts of all Weiss personnel that this vision can be realized.

Principle 7 - Diligence

A Weiss employee shall act diligently in providing professional services. Diligence is the provision of services in a reasonably prompt and thorough manner. Diligence also includes proper planning for, and supervision of, the rendering of professional services.


PART II - RULES

The Principles set forth in Part I apply to all Weiss personnel. However, due to the nature of a Weiss employee's particular field of endeavor, certain Rules may not be applicable to every employee's activities. The universe of activities engaged in by Weiss personnel is diverse, so in considering the following Rules, a Weiss employee must first recognize what specific services he or she is rendering and then determine whether or not a specific Rule is applicable to those services.

Rule 101 - False or Misleading Communications

  1. A Weiss employee shall not solicit customers through false or misleading communications or advertisements.
  2. A Weiss employee shall not make false or misleading communications about services or products provided by Weiss or create unsubstantiated expectations in connection with advertising or promotional activities or publications.
  3. In addition to the foregoing, all communications, advertising and promotions shall comply with the standards set forth in (i) the FTC's Telemarketing Rule, a copy of which is attached hereto as Exhibit B, (ii) the Weiss Compliance Objectives for PSG Promotional Materials, provided separately to Weiss employees and (iii) the Weiss Compliance Guidelines for Marketing Copywriters, also provided separately.

Rule 102 - Representations of Authority

A Weiss employee shall not give the impression that he or she is representing the views of Weiss or any other group unless the employee has been authorized to do so. Personal opinions shall be clearly identified as such.

Rule 103 - Conduct Involving Dishonesty

In the course of professional activities, a Weiss employee shall not engage in conduct involving dishonesty, fraud, deceit or misrepresentation, or knowingly make a false or misleading statement to a customer, employer, employee, professional colleague, governmental or other regulatory body or official, or any other person or entity.

Rule 104 - Handling of Customer Funds

Under no circumstances can a Weiss employee obtain custody over a customer's funds or securities. If customer funds or assets are improperly transmitted to a Weiss employee, that transmission must be immediately reported to Weiss's General Counsel who shall within one (1) business day return those funds or assets to the transmitter or forward them to the customer's broker.

Rule 105 - Prudent Professional Judgment

A Weiss employee shall exercise reasonable and prudent professional judgment in providing professional services.

Rule 106 - Confidential Information

  1. A Weiss employee shall not reveal - or use for his or her own benefit - without the customer's consent, any personally identifiable information relating to the customer relationship or the affairs of the customer, except and to the extent disclosure or use is reasonably necessary:
    1. To effect a transaction for the customer, or as otherwise impliedly authorized in order to carry out the customer engagement; or
    2. In accordance with legal or regulatory proceedings as required by law. For purposes of this rule, the proscribed use of customer information is improper whether or not it actually causes harm to the customer.
  2. A Weiss employee shall inform subordinates as appropriate regarding the confidentiality of information acquired in the course of their work and monitor their activities to assure the maintenance of that confidentiality.
  3. In addition to the foregoing, employees shall comply with the standards and procedures set forth in the Weiss Confidentiality Agreement provided separately to each employee.

Rule 107 - Duty to Disclose

A Weiss employee who has knowledge that another employee has committed, or is about ready to commit, a violation of this Code of Ethics that raises substantial questions as to the employee's honesty, trustworthiness or fitness as a Weiss employee in other respects, shall promptly inform the Weiss Compliance Officer of his or her division or subsidiary. This rule does not require disclosure of information or reporting based on knowledge gained as a consultant or expert witness in anticipation of, or related to, litigation or other dispute resolution mechanisms. For purposes of this rule, knowledge means you have no substantial doubt that a violation has occurred.

Rule 108 - Compliance with Applicable Laws

In all professional activities, a Weiss employee shall perform services in accordance with: (a) applicable laws, rules and regulations of governmental agencies and other applicable authorities; and (b) applicable rules, regulations and other established policies of Weiss.

Established procedures are to be reviewed and updated at least quarterly by the applicable Compliance Officer and General Counsel.

  1. Weiss Capital Management
    1. Securities Exchange Act of 1934;
    2. Investment Company Act of 1940;
    3. Investment Advisers Act of 1940;
    4. Association for Investment Management and Research Code of Ethic and Standards of Professional Conduct;
    5. WCM Written Supervisory Procedures;
    6. Weiss Capital Securities, Inc. Written Supervisory Procedures;
    7. Weiss Personal Securities Trading Policy Manual;
    8. Request for Authorization of Securities Transactions;
    9. Weiss Fund, Inc. (Treasury Only Money Market Fund) Code of Ethics; and
    10. National Association of Securities Dealers Conduct Rules.
  2. Human Resources
    1. Weiss Group Inc. Employee Handbook
  3. Weiss Ratings - Complaint Handling Procedures

Rule 109 - Conflicts of Interest

  1. A Weiss employee shall avoid actual or apparent conflicts of interest and advise all appropriate parties of any potential conflict.
  2. A Weiss employee shall refrain from engaging in any activity that would prejudice their ability to carry out their duties ethically.
  3. A Weiss employee shall refuse any gift, favor, or hospitality that would influence or would appear to influence their actions.
  4. In addition to the foregoing, employees shall comply with the standards set forth in (i) the Weiss Memorandum of Understanding - Conflict of Interest Policy, provided separately to each employee, and (ii) Section 108 of the Weiss Employee Handbook, which are deemed a part of this Code of Ethics.


PART III - RESOLUTION OF ETHICAL CONFLICTS

In applying the principles and rules of ethical conduct set forth in this Code, employees may encounter problems in identifying unethical behavior or in resolving an ethical conflict. When faced with such a situation, employees should follow the established policies of Weiss bearing on the resolution of such conflict. If these policies do not resolve the ethical conflict, then employees should consider the following courses of action.

  • Discuss such problems with the immediate superior except when it appears that the superior is involved, in which case the problem should be presented initially to the next higher managerial level. If a satisfactory resolution cannot be achieved when the problem is initially presented, submit the issues to the next higher managerial level. If the immediate superior is the chief executive officer, or equivalent, the acceptable reviewing authority may be a group such as the audit committee, executive committee or board of directors. Contact with levels above the immediate superior should be initiated only with the superior's knowledge, assuming the superior is not involved. Except where legally prescribed, communication of such problems to authorities or individuals not employed or engaged by Weiss is not considered appropriate.
  • Clarify relevant ethical issues by confidential discussion with the Weiss Compliance Officer to obtain a better understanding of possible courses of action.
  • If the ethical conflict still exits after exhausting all levels of internal review, there may be no other recourse on significant matters than to resign from the organization and to submit an informative memorandum to an appropriate representative of the organization. After resignation, depending on the nature of the ethical conflict, it may also be appropriate to notify other parties.