Which of the following is not a prohibited practice under IIROC Rule 2800?

Which of the following is not a prohibited practice under IIROC Rule 2800?

• A. Manipulating stock prices
• B. Trading ahead of clients
• C. Making investment decisions based on insider information
• D. Trading transparently with client approval

Answer: (D)

The correct answer identifies a practice that is permitted under IIROC Rule 2800 as it embodies transparency and client consent. This rule emphasizes ethical conduct and the protection of investors, highlighting that any trading conducted transparently and with the approval of the client is in line with regulatory standards.

In contrast, the other practices listed—manipulating stock prices, trading ahead of clients, and making investment decisions based on insider information—are all considered unethical and illegal under IIROC regulations. These activities undermine market integrity and violate the fundamental principles of fair dealing and fiduciary responsibility that brokers are obligated to maintain. Thus, the key distinction lies in the transparency and client involvement in the decision-making process, which is why trading transparently with client approval is not prohibited and is, in fact, encouraged.