SIE Exam Question 87: Answer and Explanation

Question: 87

Which of the following is true regarding third-party research reports?

• A. A third-party research report is a research report produced by a person in the research department of a member firm.
• B. Third-party research reports and independent third-party research reports have the same meaning.
• C. A registered principal (or supervisory analyst) must approve all third-party research reports distributed by a member.
• D. A registered principal (or supervisory analyst) must approval all independent third-party research reports.

Correct Answer: C

Explanation:

A registered principal (or supervisory analyst) must approve all third-party research reports distributed by a member. A registered principal (or supervisory analyst) does not need to approve independent third-party research reports.