Its an extension of one of the ques I saw on Schweser
Laura’s employer is working on an underwriting and Laura finds out that the issuer has altered the financial statements to hide operating losses. Her employer does not take appropriate steps after learning about the matter, which leaves her to dissociate from the assignment. What’s her next best step:
a- Report this to the financial press anonymously
b- Report the regulator
c- Not do anything as her lawyer advised that according to the local laws, she is not obliged to report it as long as she is not assisting the underwriting team in any way
IMO, its C because that’s what Schweser says is the best course of action BUT B feels the “right” thing to do here given that it’s in the interest of protecting the integrity of capital markets.