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← Series 79: Section 4
Series 79 practice questionhardChinese Walls / Information Barriers

A firm's control room discovers an employee in the equity research department has been repeatedly accessing deal files from investment banking without a business need. What is the firm's best course of action under information barrier policies?

  1. ARestrict the employee's access and review for possible policy violations✓ Correct answer
  2. BIgnore the activity unless a trade is made
  3. CShare the finding only with the investment banking team
  4. DReport the issue directly to the client before any internal review
Explanation

Why A — Restrict the employee's access and review for possible policy violations

Control rooms must restrict access and investigate for possible breaches to safeguard MNPI. Ignoring or disclosing prematurely can exacerbate risks and violate internal controls.

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