Series 79 practice questioneasyChinese Walls / Information Barriers
What is the primary control for preventing the improper flow of MNPI between advisory and sales-and-trading departments?
- AThe internal audit department
- BLegal counsel for the client
- CExternal legal counsel
- DFirm's information barrier (Chinese wall) policies and procedures✓ Correct answer
Explanation
Why D — Firm's information barrier (Chinese wall) policies and procedures
Information barrier policies and procedures are specifically designed to prevent improper communication of MNPI between sensitive departments. Internal or external legal counsel and audit may play supporting roles, but the policies themselves are central.
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