Who is permitted to purchase an equity IPO in her personal account?

The correct answer is that the cousin of a registered representative is permitted to purchase an equity IPO in her personal account. Under the regulatory framework governing initial public offerings (IPOs), certain family members of registered representatives are allowed to participate in IPOs, with a few exceptions typically aimed at immediate family members, like spouses or children, who might pose a conflict of interest or be subject to different rules. Cousins do not fall under this immediate family category, making it permissible for them to invest.

In contrast, the mother-in-law of a registered representative is generally restricted from participating in IPOs due to the closer familial relationship, which is often treated with heightened scrutiny to prevent conflicts of interest. A portfolio manager of a mutual fund might also be limited in their ability to purchase IPOs because they often have a fiduciary duty to obtain the best investment opportunities for the fund rather than for personal gain. Lastly, an employee of an insurance company may face restrictions similar to those imposed on registered representatives and their immediate families, as such employees may have access to sensitive information regarding investment offerings that can create conflicts of interest.