"Prohibited transactions" are discussed in Standard IV (B.4), Priority of Transactions. Which of the following is NOT suggested as a prohibited transaction for investment personnel?
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A. B. C. D. E.Explanation
Under the compliance procedures for Standard IV (B.4), members and their firms should clearly define prohibited transactions so that employees completely understand their obligations to clients and their employer. Participation by investment personnel in equity or equity-based IPOs should be restricted. Members' firms should, for example, impose strict limits on investment personnel acquiring securities in private placements. Managers should not be prevented, however, from purchasing government issues, such as municipal bonds and/or other government securities.