Series 79 practice questionmediumResearch Analyst Conflicts
Which of the following is required to ensure research analyst independence under FINRA rules?
- AFunctional separation and policies preventing investment-banking supervision or control of research✓ Correct answer
- BResearch analyst compensation solely determined by investment banking revenue
- CUnrestricted communication between analysts and banking staff during offerings
- DAllowing analysts to attend investment banking pitch meetings without disclosure
Explanation
Why A — Functional separation and policies preventing investment-banking supervision or control of research
FINRA Rule 2241 requires functional separation and conflict-management controls. It does not impose a universal physical-separation mandate.
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