Reading 2: Guidance Statements for Standards I - VII

LOS a, b:

1、Janine Walker is an individual investment advisor with 200 individual clients. When she first obtains a client, Walker solicits personal data that helps her formulate an investment recommendation, including tax status, income, expenditure needs, and risk tolerance. The Standards:

A)   only require to update a client's data when a material change is being made to the clients' portfolio.

B)   require Walker to update the data at least once every three years.

C)   require updating a client's data only when a material change occurs to the personal data.

D)   require Walker to update the data regularly.

Click for Answer and Explanation D)

According to Standard III(C), Suitability, Members and Candidates must reassess client information and update regularly.