CFA Practice Question
Which of the following actions is consistent with proper compliance with Standard VI (B) - Priority of Transactions?
A. The firm leaves the definition of personal transactions up to the employee.
B. The firm disseminates research reports to a broad group of people within the firm.
C. The firm places securities for which it issues research reports on a banned list for trading.
Explanation: Prohibited transactions should be clearly defined so that employees know how to minimize violations of this standard. Other choices are not consistent for compliance with this standard.
User Contributed Comments 3
| User | Comment |
|---|---|
| dimanyc | Although C might in fact be consistent with the Standard, it clearly is stupid. Sell-side firms make most of their sales by issuing reports and then trading clients assets based on the recommendation changes. |
| Birdy101 | banned for personal trading... |
| Oarona | Thanks birdy101 |