- Which of the following is a required compliance procedure? A) Firms should require covered employees to disclose all investment banking relationships or whether the analyst has participated in marketing activities for the subject company. B) Firms must prohibit any communication between research and investment banking or corporate finance prior to the publication of a research report. C) Investment managers must disclose in writing that more information concerning soft dollar arrangements is available upon request. 2) Which of the following is a required compliance procedure? A) Investment manager should disclose the duty to seek best execution. B) Investment manager must provide the total amount of brokerage paid from all accounts over which the investment manager has discretion. C) Investment manager must consider trade execution capacities when selecting brokers. 3) Which of the following is not a recommended compliance procedure? A) All supporting research reports should be provided at a reasonable cost B) Analysts must not be allowed to participate in marketing “road shows” C) Prohibit covered employees and immediate family members from trading contrary to the firm’s recommendations, except under cases of extreme financial hardship.
1-A 2-B 3-B
1-A 2-B 3-A son this stuff is serious
A A (not sure, could be B) A
C C A
C C A This is a good set of questions…
- A 2. B 3. A
C C A tough questions
A B A
Correct Answers: 1) C 2) C 3) C
Damil4real Wrote: ------------------------------------------------------- > Correct Answers: > > 1) C > 2) C > 3) C Thanks there. Good questions.
On #3, B) Analysts must not be allowed to participate in marketing “road shows” --> why is this prohibited? if analysts cannot participate in road shows then who can? C) Prohibit covered employees and immediate family members from trading contrary to the firm’s recommendations, except under cases of extreme financial hardship. --> i could have sworn i saw this as prhibited. is this false because the immediate family members are not prohibited even th ough they anaylysts are?
Wow! I can’t believe it. I actually got 2/3rds of the Ethics questions right. I must admit these were pretty difficult.
B) Analysts must not be allowed to participate in marketing “road shows” --> This is a bad question. Sell-side analysts can certainly participate in non-deal road shows with clients, its the deal oriented road show marketing that is prohibited. C) Prohibit covered employees and immediate family members from trading contrary to the firm’s recommendations, except under cases of extreme financial hardship. --> I think this is non-prohibited because you can trade contrary to firm recomendation, but not your OWN recomendations.
I have work to do 
the show NY Wrote: ------------------------------------------------------- > On #3, > > > B) Analysts must not be allowed to participate in > marketing “road shows” --> why is this prohibited? > if analysts cannot participate in road shows then > who can? > > C) Prohibit covered employees and immediate family > members from trading contrary to the firm’s > recommendations, except under cases of extreme > financial hardship. --> i could have sworn i saw > this as prhibited. is this false because the > immediate family members are not prohibited even > th ough they anaylysts are? For the employees and their families, It’s not recommended, it prohibited. I hate those questions of recommended vs. prohibited. The questions says which is not “recommended”