CFA Practice Question

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CFA Practice Question

Which of the following are appropriate procedures for handling insider information inside a firm?

I. control information flow between departments
II. monitor employee trading when in possession of sensitive information
III. limit the number of employees with access to the information
A. II and III
B. I and III
C. I, II and III

User Contributed Comments 5

User Comment
prajacti shouldn't II read "disallow employee trading" rather than just "monitor"? i.e. restricted lists etc? i chose option B due to this
charlie you cannot really disallow - employees can still trade these stocks but their activities should be monitored.
toxoplasmosis That's right.The activity should actually be monitored.
tylaw This is a tricky question. I agree the trading should not be allowed. This web site's calling card is its trick questions.
Shaan23 Proprietary trading should NOT be ceased when material nonpublic material released ...

therefor monitored.
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