Which procedure is least likely recommended for compliance concerning priority of transactions?

The least likely recommended procedure for compliance concerning the priority of transactions is limited front-running by employees. Front-running refers to the unethical practice where an employee executes orders on a security for their own account while taking advantage of advance knowledge of pending orders from clients.

Compliance procedures are designed to promote fairness and integrity in trading practices, uphold client trust, and prevent any conflicts of interest. Limited front-running would imply condoning some degree of this unethical behavior, which directly undermines the principles of ethical conduct in finance. Ethical standards and regulations strongly prohibit any form of front-running, as it places the interests of employees above those of clients, damaging the credibility of a firm.

In contrast, blackout periods, which limit trading during certain times, help prevent conflicts of interest. Disclosure of policies ensures clients are informed and aware of how personal investing might affect their interests. Regular audits of employee trades are a proactive step in ensuring compliance and identifying any breaches. These procedures promote transparency and help protect the integrity of the financial system, making them more suitable than any form of front-running.