NO.PZ202403070100001004
问题如下：
Which of McGuinn’s recommendations is least appropriate to implement as per recommended procedures for compliance of Standard II(A)–Material Nonpublic Information?选项：
A.Recommendation 1 B.Recommendation 2 C.Recommendation 3解释：
Solution-
Correct. When a firm acts as a market maker, a prohibition on proprietary trading may be counterproductive to the goals of maintaining the confidentiality of information and market liquidity, as outlined in Standard II(A)–Material Nonpublic Information. In some cases, a withdrawal by the firm from market-making activities would be a clear tip to outsiders. Firms that continue market-making activity while in the possession of material nonpublic information should, however, instruct their market makers to remain passive to the market (i.e., take only the opposing side of unsolicited customer trades).
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Incorrect because regularly reviewing employee and proprietary trading is one recommendation to assess whether trades are being done on the basis of nonpublic material information.
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Incorrect because requiring all employees to attend an annual refresher course in how to identify and handle material nonpublic information is a recommendation that helps to increase awareness of insider information issues. With increased awareness, the likelihood of a violation decreases.
- recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct
没懂，讲解下
