Where a financial analyst wants to conduct a personal transaction which relates to investment research being undertaken, what additional requirement is normally imposed?
A.
Signing of a non-conflict disclaimer
B.
Approval from the firm’s legal or compliance department
When a financial analyst wishes to conduct a personal transaction that is related to ongoing investment research, the approval from the firm’s legal or compliance department is typically required. This additional requirement helps ensure that there is no conflict of interest and that the analyst's personal transactions do not interfere with their professional duties or the integrity of the research process. The compliance department will review the transaction to ensure it adheres to the firm's internal policies and regulatory requirements, thus safeguarding the analyst’s objectivity and maintaining the credibility of the investment research.
[Reference: CISI UAE Financial Rules and Regulations — Personal Transaction Requirements for Financial Analysts, Section 9.3.4 (2023).]
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