Reading 41: Execution of Portfolio Decisions－LOS o

The CFA Institutes Trade Management Guidelines do not require that investment management firms hire independent outside consultants to ensure best execution.

The CFA Institutes Trade Management Guidelines are split into three parts: processes, disclosures, and record keeping. These guidelines are meant to assist investment management firms in achieving best execution and maximum portfolio value for their clients.

Documentation concerning policies and procedures to outside parties should be disclosed to outside regulators, not held within the firm. The CFA Institutes Trade Management Guidelines state that in regards to record keeping, investment management firms should maintain the documentation supporting: 1) the firms compliance with its policies and procedures; and 2) disclosures made to its clients. In doing so, the firm provides evidence to regulators as to how the firm pursues best execution for its clients.