RE: Item Set Questions on Mock Exam. Jacaranda and Athena Case

veryjasper

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Jacaranda:
1. from the text.
“Jacaranda’s independent research contractor, Mathew Ochieng, who does not have access to the company’s server. Ochieng, who only undertakes research for Jacaranda, send his research reports to the head of research, who then archives these electronic copies.”
My question is how does the firm prevent the independent reserach contractor from front running clients in the firm (because he makes recommendation and can trade beforehands)?
2. from the answer key for question #4, I read that independent research contractor, Mathew Ochieng, “provides research only for Jacaranda, he wouldn’t necessarily be considered as a third-party research provider”, but I can’t find the text that supports this statement.
Additionally, what are the rules that govern an independent researcher, especially about record retentions?
Athena:
Regarding question # 6, choice B, what should be included in the disclosure of the firm’s risk management process, according to the Asset Manager Code of Professional Conduct?
Thanks!
 
Athena#6, Schweser is missing this: “plans for contacting and communicating with clients during a period of extended disruption”. It is stated in the corriculum. We should remember.
 
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