Question #20 - Reading 42.5 Standards of Professional Conduct Guidance for Standards V

Reading: Reading 42.5 Standards of Professional Conduct Guidance for Standards V

PDF File: Reading 42.5 Standards of Professional Conduct Guidance for Standards V.pdf

Page: 12

Status: Correct

Correct Answer: A

Shared Context

- Based on the information presented in this situation, Jones has an obligation to do all of the following EXCEPT: A) encourage his employer to review the compliance procedures as they relate to material nonpublic information issues. B) wait to trade on the information until after a reasonable period has passed. C) encourage public dissemination of the information.

Question

Based on the information presented, Lincoln should adopt a set of guidelines on inside information that include each of the following EXCEPT:

Answer Choices:

A. have in place a supervisor or compliance officer who has the authority and responsibility to decide whether information is material and nonpublic

B. prohibit exchange of personnel, even temporary, between investment banking and institutional money management departments

C. develop criteria for identifying inside information

Explanation

There is no need to avoid transfer of personnel as long as proper safeguards and procedures are observed.

Actions

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