Series 79 practice questionmediumChinese Walls / Information Barriers
Which of the following is essential for a successful 'wall-crossing' process in a public-to-private transaction?
- ADisseminating research reports to all employees
- BGranting all staff access to the deal data room
- CObtaining written acknowledgments from personnel receiving MNPI✓ Correct answer
- DAllowing unrestricted trading in the issuer's securities
Explanation
Why C — Obtaining written acknowledgments from personnel receiving MNPI
During wall-crossing, recipients of MNPI must provide written acknowledgment to document they understand the restrictions. The other choices would compromise information control and increase regulatory risk.
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