Series 79 practice questionmediumChinese Walls / Information Barriers
Which of the following best describes the role of a control room in a large investment bank?
- AManaging the firm’s proprietary trading strategies
- BEnforce banking–trading information barriers✓ Correct answer
- CApproving all external press releases
- DReviewing public disclosure filings for accuracy
Explanation
Why B — Enforce banking–trading information barriers
The control room coordinates the enforcement of information barriers to prevent MNPI leaks. The trap is believing the control room manages trading or public filings, which are not its primary focus.
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