Reading 9: Changing Investment Objectives LOS b-Q 1～4

答案和详解如下：

1、In order to remain in compliance when managing private client accounts, members must do all of the following EXCEPT:

A)   Conduct regular reviews of client circumstances.

B)   Seek authorization for changes in investment policy.

C)   Use a risk-factor model to assess the client's risk tolerance.

D)   Document any changes in investment policy.

The correct answer was C)

There is no requirement to use a specific model in order to assess and document a client’s risk tolerance. Risk tolerance is more likely to be addressed implicitly in the asset allocation guidelines that are established and updated based upon client circumstances.

2、A manager of pooled funds must do all of the following to remain in compliance with the Standards EXCEPT:

A)   disclose portfolio construction processes.

B)   seek authorization for any trade that involves more than 1 percent of the fund's assets.

C)   periodically conduct an internal audit of investment processes.

D)   seek authorization for any proposed changes.

The correct answer was B)

There is no requirement to seek authorization for trades on the basis of size.

3、An internal audit of Vega Fund has determined that the fund is out of compliance with its investment policy statement as disclosed in the prospectus. Vega should do all of the following EXCEPT:

A)   Revise the investment process in order to be consistent with the investment policy statement.

B)   Disclose any intention to change the investment process.

C)   Revise the internal audit procedure to allow such occurrences in the future.

D)   Seek authorization should it be determined that the investment policy requires alteration.

The correct answer was C)

It would appear that the internal audit procedure has effectively uncovered a compliance violation, and that is an objective of the procedure. Hence, there is no need to revise the internal audit procedure.

4、A manager of pooled funds must do all of the following to remain in compliance with the Standards EXCEPT:

A)   Disclose basic security selection processes.

B)   Conduct regular internal checks for compliance.

C)   Print the investment policy statement in all quarterly reports.

D)   Notify potential investors of any changes in investment policy.

The correct answer was C)    

There is no requirement to include the investment policy statement in all quarterly reports.