Another name for "access" person is ________.
Click on the arrows to vote for the correct answer
A. B. C. D. E. F.F
Access or covered persons have knowledge of pending or actual investment recommendations or action. The firm's definition of access (covered) person should be broad enough to cover all people with that knowledge.
The correct answer is E. fiduciary.
In the context of finance and investments, a fiduciary is a person or entity that has the legal and ethical duty to act in the best interest of another party, known as the beneficiary or principal. Fiduciaries are entrusted with managing the assets or investments of another person or entity and are expected to exercise a high level of care, loyalty, and prudence in carrying out their responsibilities.
The term "access" person refers to an individual who has access to nonpublic information about a company. This could include information about the company's financial performance, business strategies, potential mergers or acquisitions, or other material information that is not available to the general public. Access persons typically include employees, officers, directors, or agents of a company who have access to such nonpublic information.
In the investment industry, fiduciary duty is an important concept. Investment advisors, for example, are fiduciaries who have a legal obligation to act in the best interest of their clients. They must prioritize the clients' interests above their own and avoid conflicts of interest that could compromise their duty.
The other answer choices can be explained as follows:
A. None of these answers: This option indicates that none of the given answer choices are correct.
B. Supervisor: A supervisor is a person who oversees and manages the work of others but may not necessarily have the fiduciary duty associated with managing investments or acting in the best interest of another party.
C. Ombudsman: An ombudsman is an independent person or office that acts as a neutral intermediary to address complaints or disputes. While an ombudsman may play a role in resolving conflicts, they do not necessarily have the fiduciary duty of acting in someone's best interest.
D. Guardian: A guardian is a person who has legal responsibility for the care, protection, and well-being of another individual, typically a minor or an incapacitated person. While a guardian has a duty to act in the best interest of the person they are responsible for, it may not directly correlate with managing investments or accessing nonpublic information.
E. Fiduciary: As mentioned earlier, a fiduciary is a person or entity entrusted with managing assets or investments on behalf of another party and has a legal and ethical duty to act in the best interest of that party.
F. Covered person: The term "covered person" is a broad term that can have different meanings depending on the context. In the context of the question, it is not specifically defined or commonly associated with the role of an "access" person. Therefore, it is not the most appropriate answer.
In summary, the term "access" person is another way of referring to someone who has access to nonpublic information about a company. The most appropriate term used in the investment industry for an individual with this access is a fiduciary, as they have a legal obligation to act in the best interest of their clients or beneficiaries.