CFA Practice Question

CFA Practice Question

In terms of CFA Institute's Standards of Professional Conduct per Standard III(C): Suitability, Members will need to gather client information about each of their clients. This will include financial circumstances, occupation, investment objectives and risk tolerances. When should this inquiry be made?

I. At the inception of the relationship.
II. At least annually.
III. At least every six-month.
IV. Prior to making any major changes in the client portfolio.
A. I and II only.
B. I, II and IV.
C. I, III and IV only.
Explanation: Members will need to gather client information about each of their clients at the inception of the relationship. This inquiry should be repeated at least annually and prior to making any major changes in the client portfolio.

User Contributed Comments 2

User Comment
dblueroom IV is probably stated in the standard. otherwise, your major change in client portfolio should take in light of the IPS
Mikehuynh Investment Policy Statement:
1. Identification of clients
2. Objectives
3. Constraints: liquidity, time horizon, etc.
You need to log in first to add your comment.