Series 79 practice questioneasyChinese Walls / Information Barriers
Which action is a key component of an effective information barrier in an investment bank?
- AAllowing unrestricted email communication between research and investment banking
- BPhysically separating investment banking and trading staff✓ Correct answer
- CRequiring traders to report all phone calls
- DPosting deal information on the company's intranet
Explanation
Why B — Physically separating investment banking and trading staff
Physical separation is a clear method to enforce information barriers and limit unintentional information flow. The trap is thinking monitoring or sharing information is sufficient without physical or procedural barriers.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 477+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Section 4 questions
- A firm’s watch list is primarily used for which purpose?
- Which of the following best describes the role of a control room in a large investment bank?
- Under Exchange Act Rules 17a-3 and 17a-4, how long must a broker-dealer retain customer account records after account…
- A registered representative is found liable for egregious securities fraud. Which scenario most accurately reflects…