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Answer: Remove a corporate client from the research universe and place it on a restricted list if the firm is unwilling to disseminate adverse opinions about the company.
**Explanation:** - **Option A** is incorrect because the Standard recommends implementing formal policies for employee participation in IPOs, including approval and disclosure, rather than prohibiting such participation outright. - **Option B** is correct. According to the Standard, if a firm is unwilling to disseminate adverse opinions about a corporate client, the client should be removed from the research universe and placed on a restricted list to ensure only factual information is shared. - **Option C** is incorrect because the Standard specifies that procedures and policies for reporting unethical behavior should be provided to all employees, not every client. This ensures internal compliance and ethical practices within the firm.
Author: LeetQuiz Editorial Team
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Which of the following is a recommended procedure for compliance with the Standard relating to independence and objectivity? Members should encourage their firms to:
A
Implement formal policies requiring approval for employee participation in equity-related IPOs, with prompt disclosure of investment actions taken post-offering.
B
Remove a corporate client from the research universe and place it on a restricted list if the firm is unwilling to disseminate adverse opinions about the company.
C
Ensure all employees are provided with procedures and policies for reporting unethical behavior, regulatory violations, or activities that may harm the firm's reputation.
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