Question #38
Reading: Reading 42.5 Standards of Professional Conduct Guidance for Standards V
PDF File: Reading 42.5 Standards of Professional Conduct Guidance for Standards V.pdf
Page: 20
Status: Incorrect
Correct Answer: A
Your Answer: C
Question
A manager of pooled funds must do all of the following to remain in compliance with the Standards EXCEPT:
Answer Choices:
A. seek authorization for any proposed changes
B. seek authorization for any trade that involves more than 1 percent of the fund's assets
C. disclose portfolio construction processes
Explanation
There is no requirement to seek authorization for trades on the basis of size.
(Module 42.8, LOS 42: V(B))