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NEW QUESTION: 3
"Prohibited transactions" are discussed in Standard IV (B.4), Priority of Transactions. Which of the following is NOT suggested as a firm policy?
A. Firms must determine specific requirements relating to blackout period.
B. All individuals who are involved in the investment decision-making process should be subject to the same restricted period.
C. Participation by investment personnel in equity should be restricted.
D. None of these answers.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Under the compliance procedures for Standard IV (B.4), members and their firms should clearly define prohibited transactions so that employees completely understand their obligations to clients and their employer. Participation by investment personnel in equity or equity-based IPOs should be restricted. Also, firm procedures should prevent managers or employees from initiating trades in a security for which their firms have a pending buy or sell order within a 24-hour period. Firms must determine specific requirements relating to such blackout periods. All individuals who are involved in the investment decisionmaking process should be subject to the same restricted period.


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