Final answer:
An access person's report on security holdings must reflect adherence to the Principle of Justice in acquisition and transfer, ensuring all holdings are ethically and legally obtained and transferred.
Step-by-step explanation:
When compiling an access person's report on their security holdings, particularly in the context of financial regulations and compliance, several key elements must be included. First, it is important to ensure that all holdings are acquired with proper adherence to legal and ethical standards, which align with the Principle of Justice in acquisition that stipulates a person is entitled to a holding that they acquire justly. Additionally, when securities are transferred, the Principle of Justice in transfer must be followed. This principle dictates that transfers of holdings must be from a party who is also entitled to the holding, ensuring legitimacy of ownership throughout the transaction process.
These principles are grounded by the overarching rule that no one is entitled to a holding unless they have adhered to both the Principle of Justice in acquisition and the Principle of Justice in transfer. The access person's report, therefore, should meticulously document and verify the legitimacy of both the origins and the transfer processes of all security holdings to ensure compliance with the relevant regulations and to maintain the integrity of the financial activities being reported. The thoroughness and accuracy of these reports are crucial for regulatory compliance and for fostering trust in financial transactions.