An investment bank's control room adds a company to its restricted list after learning of a potential merger. Which of the following best describes the impact on the firm's trading and research departments?

1. AThe research department may continue to issue reports but must not discuss the merger.
2. BApply documented restrictions to trading, research, and any permitted client activity✓ Correct answer
3. CThe trading desk can continue proprietary trading but must halt client trades in the issuer's securities.
4. DOnly the control room staff are prohibited from discussing the issuer with other departments.

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