Which of the following are minimum requirements of construction of a “Fire Wall” within a firm? I. Large degree of control, preferably by compliance, of relevant interdepartmental communications. II. Background checks conducted on all employees engaging in trading. III. Review of employee trading through use and maintenance of a combination of “watch”, “restricted”, or “rumor” lists. IV. More careful review / restriction of proprietary trading while firm is in possession of material nonpublic information. a. I, II, III and IV. b. I and IV only. c. II, III and IV only. d. I, III and IV only.
D ii is not required by the standards
what about B? are those watch lists required???
I think B is the right answer ?
I would go with B as well
B ??? Watch lists are good to have implemented…but not enforced by the SoPC
what is the answer?? I would think D
hello? I would like to know the answer to this
I think III is a crucial one. I’ll go with D as well.
siambank can we have the answer please?
I will go with B - I am not sure III is necessary for a “Fire Wall” what is the answer?
D for me
D The following is from CFAI text online, p40: The minimum elements of such a system (firewall) include, but are not limited to, the following: *substantial control of relevant interdepartmental communications, preferably through a clearance area within the firm in either the compliance or legal department; *review of employee trading through the maintenance of “watch,” “restricted,” and “rumor” lists; *documentation of the procedures designed to limit the flow of information between departments and of the enforcement actions taken pursuant to those procedures; *heightened review or restriction of proprietary trading while a firm is in possession of material nonpublic information.