Question

An investment adviser has adopted an external business succession plan. Who is responsible for servicing the IA's client accounts if the managing director of the investment adviser suddenly dies?

Answer 1

The correct answer is (B)

Step-by-step explanation:

In a situation where an investment adviser has adopted external business succession plan, and if the managing director dies the IA's client account will be managed by another IA Firm to which investment management has been transferred. Because of the external business succession plan the client account will be transferred to other IA firm to manage the funds.