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?
II. At least annually.
III. At least every six-month.
IV. Prior to making any major changes in the client portfolio.
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. |