Series 79 practice questioneasyChinese Walls / Information Barriers
Which of the following is a primary function of a control room in an investment bank?
- AApproving all client marketing materials
- BMonitoring and enforcing restrictions regarding the flow of MNPI✓ Correct answer
- CExecuting trades for the proprietary trading desk
- DSupervising branch office employees
Explanation
Why B — Monitoring and enforcing restrictions regarding the flow of MNPI
The control room is responsible for monitoring and enforcing internal information barriers to prevent improper sharing of MNPI. The other functions listed do not relate to the specialized compliance role of a control room, which is crucial for regulatory compliance.
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