Question

"The legislation that requires a broker-dealer's research analysts to be completely separated from that firm's investment banking department is the:"

Answer 1

Answer:

Sarbanes-Oxley Act of 2002.

Explanation:

Sarbanes-Oxley Act of 2002 is a legal framework which was passed by the 107th U.S Congress on the 30th of July, 2002. The law required that investment banking be completely made rid of research analysts who works at a broker-dealer firms, so that the analysts are not influenced to write favorable reports to enhance their potential investment banking businesses.

Hence, the legislation that requires a broker-dealer's research analysts to be completely separated from that firm's investment banking department is the Sarbanes-Oxley Act of 2002.

It is a law that imposes a stiffer penalty for any securities related law break offence by the accountants, auditors etc by mandating strict reforms to the existing securities regulations.